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Wycombe District Council
Statement of Accounts
2017/18
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Table of Contents
INTRODUCTION ........................................................................................................... 3
NARRATIVE REPORT .................................................................................................. 4
STATEMENT OF RESPONSIBILITIES ...................................................................... 19
CORE FINANCIAL STATEMENTS ............................................................................ 20
COMPREHENSIVE INCOME & EXPENDITURE ACCOUNT .........................................................20
STATEMENTS OF MOVEMENTS IN RESERVES .........................................................................21
BALANCE SHEET ..........................................................................................................................22
CASH FLOW STATEMENT ............................................................................................................24
NOTES TO THE CORE FINANCIAL STATEMENTS ................................................. 25
NOTES TO COMPREHENSIVE INCOME & EXPENDITURE STATEMENT ..................................40
NOTES TO STATEMENT OF MOVEMENT IN RESERVES ...........................................................43
NOTES TO BALANCE SHEET .......................................................................................................45
NOTES TO CASH FLOW STATEMENT .........................................................................................60
MEMORANDUM NOTES ................................................................................................................62
SUPPLEMENTARY FINANCIAL STATEMENTS ...................................................... 79
COLLECTION FUND ......................................................................................................................79
NOTES TO THE COLLECTION FUND ...........................................................................................80
EXTERNAL AUDIT OPINION ..................................................................................... 82
ANNUAL GOVERNANCE STATEMENT.................................................................... 86
GLOSSARY OF TERMS AND ABBREVIATIONS ..................................................... 91
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Introduction
The Statement of Accounts
Welcome to Wycombe District’ Council’s Statement of Accounts for the financial year 2017/2018. I hope this narrative report and the notes that follow give you a clear picture of how the figures make up our Statement of Accounts and show you how the cash you paid became the service you received. The Statement of Accounts is required by law and covers various statutory requirements and other relevant information.
The supporting notes are aimed at providing a more detailed explanation of the often complicated local government financial arrangements.
The Statement of Accounts set out the Council’s income and expenditure for the year 2017/18 and its financial position at 31st March 2018. It comprises core and supplementary statements, together with disclosure notes.
The format and content of the financial statements is prescribed by the CIPFA Code of Practice on Local Authority Accounting in the United Kingdom 2017/18, which in turn is underpinned by International Financial Reporting Standards.
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Narrative Report
This narrative report provides an explanation of the documents incorporated within the Council’s Statement of Accounts together with guidance on how best to interpret them. This is followed by a high level analysis of the events which have had a significant impact on the Accounts.
A Glossary of key terms can be found at the end of this publication.
1. Main Statements
The Comprehensive Income and Expenditure Statement
This records all of the Council’s income and expenditure for the year. The top half of the
statement provides an analysis by service area. The bottom half of the statement deals with
corporate transactions and funding. Expenditure represents a combination of:
Services and activities that the Council is required to carry out by law (statutory duties)
such as street cleaning, planning and registration; and
Discretionary expenditure focused on local priorities and needs
The Movement in Reserves Statement
This is a summary of changes to the Council’s reserves over the course of the year. Reserves are divided into “Useable”, which can be invested in capital projects or service improvement, and “Unusable”, which must be set aside for specific purposes.
The Balance Sheet
This is a “snapshot” of the Council’s assets, liabilities, cash balances and reserves at the 31 March 2018.
The Cash Flow Statement
This shows the reason for changes in the Council’s cash balances during the year and whether the change is due to operating activities, new investment, or financing activities (such as repayment of borrowing and other long-term liabilities).
The Supplementary Financial Statements are:
The Notes to these financial statements provide more detail about the Council’s accounting policies and individual transactions.
The Collection Fund This statement shows the income and expenditure transactions of the Council in respect of the distribution of Council Tax and Non-Domestic (Business) Rates.
This document presents the statutory financial statements for Wycombe District Council (the
Council) for the period 1st April 2017 to 31st March 2018 and presents an overall true and fair
view of the financial position of the council. The accounts are presented in accordance with the
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Code of Practice on Local Authority Accounting in the United Kingdom 2017/18 (the Code) in
the format recommended by the Chartered Institute of Public Finance and Accountancy
(CIPFA).
This narrative report will also provide information on the Council’s financial performance and
economy, efficiency and effectiveness in its use of resources over the financial year in line with
regulation 8(2) of the Accounts and Audit Regulations 2015.
Wycombe District had a population of 172,000 in the 2011 census and stretches from just south
of Aylesbury in the north, to the Thames in the south. Henley is just outside of the district to
the west, and to the east the district goes to the edge of Beaconsfield. 71% of the district is
part of an Area of Outstanding Natural Beauty (AONB), and 48% of the district falls within the
Metropolitan Green Belt, which runs all the way round London. The district is in a primate
location, with excellent access to the M25/M40/M4 corridor, good rail links between London
and Birmingham and is close to Heathrow and London.
In the 2011 census, Wycombe District had an 81% white population and BME / other 19%.
Just over 25% of the population were under the age of 20 and 22% of the population over 65.
The working age population was 57%. The district has very high property values, with average
house prices in the district rising 4% from 12 months ago to £0.441m, which is 14 times the
average salary (£31,572). The district contains pockets of deprivation in the town of High
Wycombe, with 16% of children living in low income families.
2. Political Make-up and Model
As at 31 March 2018, the Council was made up of 49 Conservatives, 6 Labour, 3 East
Wycombe Independent, 1 Independent and 1 Liberal Democrat with the last full election held
in May 2015.
The Council operates with a Cabinet, an Improvement and Review Commission, 4 Regulatory
Committees, including the Audit Committee, 3 Governance and 1 Advisory Committee.
The Cabinet is chaired by the Leader of the Council. The Cabinet has decision making powers
and meets monthly. Each of the members of the Cabinet has a portfolio for which they have
responsibility.
Although a number of areas of decision making are delegated to the Cabinet and Senior
Officers, the full Council retains ultimate responsibility for the Policy and Budgetary Framework
of Wycombe District Council.
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3. Corporate Plan
The Council’s Corporate Plan was launched in 2015 and was refreshed in 2017 and agreed
from April 2018. There were 3 Corporate Priorities during 2017/18:
Regeneration and Infrastructure – our place priority. This priority focuses on investing in our District and enabling regeneration through the use of the Council’s assets. In this way, we are also helping to ensure we have the appropriate infrastructure to support sustainable growth.
Cohesive Communities – our people priority. This priority focuses on people and communities. We want to maintain and improve people’s quality of life by engaging and working with them to ensure we have more cohesive communities and can shape our plans and provision, based on local need.
Value for Money Services – our pounds priority. This priority focuses on our organisation – Wycombe District Council. It is about what we do and how we do it. We want to make sure that we continue to work to maintain our services and make sure they are responsive to meet the needs of our residents.
The priorities need to be achieved against a background of tough economic conditions, mainly due to increases in private sector rents and welfare changes, leading to higher demand for additional temporary accommodation, rising inflation impacting on the Council’s overall costs and significant reductions in local government funding, which has resulted in the Council needing to identify £0.813m of savings by 2020 and a further £3.4m by 2024.
4. Performance during the year 201718
The Council has set ambitious targets within its Corporate Plan to deliver outcomes that will address some of the districts key challenges over this period and performance targets to drive improvement.
Wycombe District Council invested £860,000 to extend broadband coverage to more
than 4,500 homes and business in the Wycombe district without broadband provision.
Government announced that Wycombe district will receive over £19million in funding
towards infrastructure that will help to ensure that housing growth in Princes Risborough
and High Wycombe is possible.
The Council confirmed a £1.2million extension to Risborough Springs Swim and
Fitness Centre will get underway in 2018, providing new fitness and leisure facilities to
Princes Risborough residents.
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Wycombe District Council has completed a hat-trick after Hughenden Park was awarded
a Green Flag Award – joining The Rye and Higginson Park in flying the flag.
WDC was awarded £500,000 from the Land Release Fund (LRF), to help clean up a
disused site in High Wycombe to make way for new, more affordable homes.
Plans are in progress for a 150 bedroom hotel on the Council’s flagship Handy X Hub
site.
Key Performance Achievements
Welcomed 952,967 users at our three leisure centres
Processed 2,179 planning applications, helping towards the provision of new housing and the creation of jobs
Emptied 5.239m bins across Wycombe district, with over 99.7% of bins emptied on time
Our housing advice work stopped 599 people becoming homeless
Processed 34,596 changes and new applications for Housing Benefit and the Council Tax Support Scheme, supporting our most vulnerable residents
We collected £111.1m in council tax income, which equates to 98.3% of the total debit, above the national average
We also collected £70.6m in business rates, equating to 99% of the total annual debit, above the national average
The full set of published performance indicators can be found on:
https://www.wycombe.gov.uk/pages/About-the-council/How-the-council-works/Our-performance.aspx
The Council continues to offer one of the lowest levels of Council Tax in England for a District Authority (27th lowest from 201 districts), whilst offering some of the widest range of facilities, including 3 sports and leisure centres, a 1000 seat theatre, open air pool, museum service and a major retailing destination in High Wycombe.
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Employees
At 31st March 2018, the Council employed 292 staff. The workforce comprises 179 female and 113 male employees.
5. Financial Performance 2017/2018
The service expenditure covers the day to day service running costs and general income of
the Council and includes expenses such as salaries, heating, lighting, rent, rates and
depreciation, plus income generated through the provision of services.
The Council had a net budget of £13.824m for 2017/18. Overall spending against this budget
was £13.714m. This gave an overall surplus of £0.110m, which equates to 0.8% of the net
Council budget.
From a contingency budget of £0.650m only £0.093m was drawn down, resulting in a revised
budget of £0.557m which helped to manage some emerging and unbudgeted pressures.
Housing had an overspend of £0.682m which is mainly due to a provision of £0.610m in respect
of housing asbestos works for which the Council has legal obligations as part of the stock
transfer in 2011. The Council has indemnified Red Kite for the costs of reasonable and properly
incurred asbestos works; provided that the indemnity will not apply to the first £1.1m of works.
142.64
0.00 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00
Breckland
North Dorset
South Cambridgeshire
Horsham
West Somerset
Chesterfield
Gedling
Lichfield
Selby
Boston
Corby
Melton
Copeland
Wyre Forest
Lancaster
Redditch
Lincoln
Average Council Tax Charges Band D - 2017/18 District Councils
Wycombe DC 27th lowest from 201 Districts
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There were favourable variances of an unspent Repairs and & Renewals programme of
£0.250m.
Community has a favourable variance of £0.309m from various sources such as sports and
leisure facilities and increased income and grant for CCTV services (£0.100m).
Planning had a favourable variance of £0.275m, which is resulting from Planning fee income
due to a combination of increased activity and a nationwide 20% fee increase from January
2018 totalling to £0.275m and an increase in CIL admin fee income of £0.092m. This is offset
by overspend on employees costs for two new posts and increased enforcement costs.
Environment ended the year with a favourable variance of £0.203m mainly due to an increase
in the volume of car parking income both for daily tickets (£0.163m) and season tickets
(£0.032m) sales.
The budget for 2018/19 has been updated to take account of financial pressures and changes
which are anticipated to continue beyond 2017/18.
A review of the key risks faced by the Council, which are likely to impact on the Council’s future
financial performance, has been carried out and used to inform planning assumptions on the
Medium Term Financial Plan forecast to 2023/24.
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Borrowing
The Council did not undertake any new borrowing in 2017/18. The Council has no outstanding
external borrowing. The Council holds finance leases in relation to the Waste Collection
Contract, which are being repaid through the contract.
2017/18
Revised
Budget
2017/18
Actual
Variance
2017/18
Qtr 3
Variance
£m £m £m £m
Community 2.741 2.432 -0.309 -0.188
Environment 5.280 5.077 -0.203 -0.127
Economic Development and Regeneration -3.962 -3.968 -0.006 0.119
Planning 1.386 1.111 -0.275 -0.153
HR, ICT and Customer Services 5.561 5.239 -0.322 -0.047
Housing 1.761 2.443 0.682 0.012
Leader 3.038 3.129 0.091 0.226
Finance and Resources 1.674 1.343 -0.331 -0.095
Contingency 0.557 0.000 -0.557 0.000
Net Cost of Service 18.036 16.806 -1.230 -0.253
Capital Charges:
Depreciation & REFCUS -2.383 -2.208 0.175
Minimum Revenue Provision 0.000 0.188 0.188
Investment Income 0.000 -0.644 -0.644
Contribution to/(from) reserves -1.938 -0.544 1.394
Council Tax Support (Parishes) 0.109 0.109 0.000
General Fund Requirement 13.824 13.707 -0.117
Funding Sources
Revenue Support Grant 0.635 0.635 0.000
Business Rates Funding 3.125 3.125 0.000
Transition Grant 0.084 0.077 -0.007
New Homes Bonus Fund applied 0.875 0.875 0.000
Council Tax - Demand on Collection Fund 8.862 8.862 0.000
Council Tax - Share of Surplus 0.243 0.243 0.000
Total funding 13.824 13.817 -0.007
Surplus for the year 0.000 -0.110 -0.110
Revenue Outturn Summary
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Income from Grants, Local Tax Payers and other sources
The following graph illustrates how the budget requirement has been financed.
In addition, some services receive specific grants, which are included in their separate budgets.
There are conditions attached to most specific grants, which set out how, when and on what
service or activity the grant may be spent.
A list of grants received by the Council in 2017/18 can be found at note 24 to the financial
statements.
Pension Liability
The Council’s financial statements, in accordance with the proper accounting practice (IAS19),
show a net pension liability at 31st March 2018 of (£62.525m), which is a reduction of £4.393m
since 31st March 2017. This is due to a change in financial and demographic assumptions.
The deficit will be funded through reassessment of the employer’s contributions as a result of
the three yearly fund revaluations by the Actuary.
Full details of the Local Government Pension Scheme can be found in note 28 to the financial
statements.
Council Tax£9.105m
New Homes Bonus£0.875
RSG£0.635m
Business Rates£3.1m
Income Sources 2017/18
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Capital Expenditure
In 2017/18 the Council invested £11.8m compared with £14.0m in 2016/17. The main areas
of expenditure in 2017/18 are explained below:
The Council spent £4m on Economic Development and Regeneration which includes the
construction of the new Aldi store, Desbox and a new Temporary Accommodation scheme.
Continued development of the Handy Cross hub at a cost of £1m and the purchase of 30-34
Oxford Road at a cost of £0.949m.
Development continued on the High Wycombe Town Masterplan and a further £1.5m was
spent during the year on the alternative link road through High Wycombe.
The council spent £1.2m on a scheme which relates to land acquisition in relation to Princes Risborough Expansion. Disabled Facility Grants – The Council provided £1.1m funding for eligible applicants to enable
them to remain in their homes by assisting with adaptations.
The Capital Expenditure has been funded from various sources, the major elements being
Capital Receipts £6.7m and Government Grants and Contributions of £5m.
The Council received capital receipts totalling £5.5m in year, which in the main was the receipt
of £4.4m from Red Kite Community Housing as part of its share of the Preserved Right to Buy
Agreement.
The Council approved its Capital Programme for 2018/19 (including capital investment
schemes), in February 2018 worth £45.358m, which included the following major schemes:
£18m on Economic Development and Regeneration
£2m on Leisure facilities
£5m on Temporary accommodation and affordable housing
£7.5m on road improvement at Abbey Barn Lane.
£1.3m on HWTC masterplan – Alternative route
£2.9m on access improvements to Cressex Business Park.
£7.3m on other infrastructure projects.
The Council expects to meet the full costs of the approved programme from existing and new
resources, which it forecasts will be generated over this period. Therefore the Council has no
plans to enter into any borrowing to fund this expenditure.
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Section 106 Contributions
The Council spent a total of £1.4m in 2017/18. Including accrued interest and new amounts
received, s106 balances decreased from £6.6m to £5.6m.
Community Infrastructure Levy (CIL)
CIL allows Councils to charge a levy on specified development that is ring fenced to fund
additional infrastructure to support the development area. The levy can be used to address
the impact of development by funding infrastructure that the Council and local communities
support.
In 2017/18, the Council raised a total of £4.4m, ring fenced for future infrastructure works within
the district. At 31st March 2018, the balance of CIL held by the Council was £7.2m.
Adequacy of Reserves
A general risk assessment was carried out alongside the development of the 2017/18 budget,
showed that the minimum prudent level of reserves was £7.5m. The General Fund Balance at
31st March 2018 was £9.848m.
In addition to this, the Council has made additional provision through specific risk reserves in
relation to the following areas:
Insurance Fund – Balance at 31st March 2018 £1.8m. This reserve helps the Council meet
future liabilities where the Council has to meet the costs of any excess under its current
insurance cover or through financial indemnities that is has made in relation to the Housing
Stock Transfer to Red Kite Community Housing.
Business Rates – The Council has set aside a specific reserve to meet the potential losses
that might arise in the future as a result of the Council not reaching is baseline funding position,
factors could include appeals, large, long-term empty properties, demolition or non-payment.
The Council holds other earmarked reserves to meet future expenditure, which will support
delivery of both the current corporate priorities and future development and growth of the
district. Details of these reserves is included at Note 18.
Significant Provisions and Contingencies
The Council has made three significant provisions that are held on the Balance Sheet as at
31st March 2018:
- Business Rates Appeals Provision – this represents the Council’s share of the
estimated costs of notified and statutory appeals for reductions to business rates
values of £3.4m.
- Insurance Provisions – the represents the estimated future losses on actual claims that
the Council expects to incur in future years £0.461m.
- Asbestos Provision of £1.2m – this is in respect of housing asbestos works for which
the Council has legal obligations as part of the stock transfer in 2011.
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- Bad Debt Provisions - this represents the amount of outstanding debt that the Council
estimates that it will not be able to collect from customers in relation to Council Tax,
Business, Rates, Housing Benefit Overpayments and other charges relating to the
provision of services £7.1m.
The Council also discloses significant contingent liabilities that it is exposed to. The Council
has provided indemnities to Red Kite Community Housing as part of the housing stock transfer.
These indemnities relate to the VAT shelter, which has a maximum exposure of £22m, an
Environmental Warranty, for which the Council has taken out separate insurance covering the
first 15 years post transfer, and Asbestos works, should the value of expenditure exceed the
sum of £1.1m, which was provided for in the original transfer agreement.
Chiltern Crematorium Joint Committee
The Council is one of three constituent members of the Chilterns Crematorium Joint
Committee, along with Aylesbury Vale and Chiltern District Councils.
The Joint Committee manages the crematorium and associated facilities located in Amersham.
Under the terms of the Joint Committee, any deficit or surplus earned by the Joint Committee
is shared between the constituent authorities on the basis of the number of cremations from
the area of each authority, in comparison to total cremations. However, it has been agreed by
all constituent authorities that any surplus will not be distributed, but will be retained by the
Joint Committee for use in funding capital expenditure to meet future deficits.
In the event of the Joint Committee ceasing to exist, any assets held are vested in the authority
in which the assets are located. In this case, the assets would transfer to Chiltern District
Council.
Wycombe District Council’s share of the accumulated reserves is £2.5m (£2.8m 2016/17). The
assets and liabilities of the Joint Committee have not been consolidated into the Council’s
accounts, reflecting the separate statutory nature of the service. Instead, the summarised
results of the Joint Committee are presented below.
The Joint Committee is to build a second crematorium to address rising demand in the region.
The table below shows the reserve balances apportioned between the constituent authorities
of the Chiltern Crematorium Joint Committee.
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AVDC
£
CDC
£
WDC
£
Total
£
Balance 31.3.2017
Apportionment 2017/18 deficit
Balance 31 March 2018
Balances retained
Earmarked for new Crematorium
General reserves
Balance as at 31 March 2018
2,024,125
180,761
1,843,364
1,141,897
701,467
1,843,364
1,819,840
141,666
1,678,174
1,100,688
577,486
1,678,174
2,755,552
226,007
2,529,545
1,626,475
903,070
2,529,545
6,599,517
548,434
6,051,083
3,869,060
2,182,023
6,051,083
Collection Fund
The Collection Fund is shown on page 80. During 2017/18, the Council collected £111.146m
in Council Tax, of which £97.301m was paid to Preceptors and £11.851m was retained by
WDC, with the surplus distributed in future years via the Collection Fund.
From the Council’s share, £2.610m was distributed to Parishes and £0.376m to the High
Wycombe Town Committee. The Council collects Non-Domestic Rates (NDR, also known as
Business Rates), retaining 40% of rates collected, with the remaining 60% being passed to
Major Preceptors and Central Government. In 2017/18, £70.604m in rates were collected,
£41.626m were paid to major preceptors and Central Government.
The majority of the £27.750m retained by Wycombe District Council is paid over to Central
Government as a tariff as it is over the Council’s baseline funding level set for the Council by
Government.
The Council’s share of business rates growth is subject to a Levy by Government of 50%. In
2017/18, the total business rates growth above the baseline was £1.8m and therefore £0.902m
was retained after payment of the Levy.
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Impact of the Current Economic Climate
The Council continues to be in a period of exceptional challenge, with reducing grant from
central government, whilst balancing higher demand and expectation on services. The Council
will need to make further economies and grow income to meet the anticipated reductions in
government funding.
Despite these reductions, the Council remains well placed to meet this and maintain one of the
lowest levels of Council Tax in England for a District Authority.
The Government triggered Article 50 in March 2017, following the result of the Referendum in
2016. It is too early to assess the medium to longer-term impact of this on the district and
Council. However, the Council will be monitoring and taking appropriate action to manage the
impacts of this as they become clearer.
In the short term, there are potential risks around inflation, whilst the pound remains at its
current low levels. The impact on the Council is managed through appropriate clauses in
supplier contracts, in terms of day to day service contracts.
There are potential risks that capital works costs will rise and the cost of future capital
expenditure schemes will therefore rise. The Council will aim to manage these risks through
its supply chain and the approach it takes to future commissioning.
Key Financial Risks
Corporate Risks
Wycombe District Council has identified its key strategic risks as part of its approach to
effective corporate governance. The strategic risks are reviewed by the senior
management team each quarter and reported and scrutinised by the Audit Committee
to ensure timely and effective action is being taken.
In the context of the Corporate Plan, delivery of the Council’s Medium Term Financial
Plan is critical to the success of the organisation and therefore its delivery to local
residents, businesses and visitor economy. The key financial risks associated with this
were set out in the 2018/19 budget report and are summarised as follows:
Business Rates Income – The Council’s funding from central government includes
£3.1m from retained business rates (Funding baseline). Since April 2013, the Council
carries 40% of the financial risk associated with the level of net income that is actually
achieved in the year. If the total income received is less than the funding baseline, then
the amount of funding the Council can retain can be reduced by 7.5%.
Business Rates Retention Scheme and Devolved Responsibilities – There are also risks
regarding business rates retention for Councils, proposed to be implemented by the end
of the Parliament. The Government intend the retention of business rates by Local
Authorities to be revenue neutral for the Government and to achieve this by devolving
responsibilities to Local Authorities. It is not clear at this stage what these additional
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responsibilities will be. The Government have also indicated that the redistribution
mechanism of ‘Tariffs and Top-Ups’ will remain and it is not clear how Business Rates
will be distributed nationally. The Medium Term Financial Plan does not make any
assumptions about these changes as there are no firm details at this stage but they will
be closely monitored and updated when new information is available.
Council Tax Support – The Council set a discount scheme in 2013/14 designed to
mitigate the projected shortfall in Council Tax Support grant it received from
government. The Council, together with other precepting bodies, is responsible for the
financial costs of any increase in take-up for this discount and uncollected payments.
Delivering Future Savings and Transformation – The budget continues to rely on a
significant level of savings and income generation, which includes the identification of
opportunities and the delivery of projects to generate funds. Any delays or failure to
deliver these could add significant strain on the Council’s budget position, both in
2018/19 and beyond. Progress will be reported to Cabinet as part of the regular budget
monitoring reports.
Universal Credit / Welfare Changes – From 2018/19, welfare changes will begin to impact more significantly with the rollout of Universal Credit, which is likely to have a major impact on Housing Benefits grant and administration grant funding.
Homelessness – Demand both nationally and locally, for assistance is expected to continue to remain at high levels during 2018/19. This has been the experience in 2017/18. A substantial budget increase has been made to meet the short term costs, pending implementation of various measures to try and increase prevent homelessness and put in place increased levels of temporary accommodation which is more affordable. The impact of the welfare changes will also become increasingly more challenging for those at risk.
Licensing of Houses in Multiple Occupation – New legislation was introduced in October 2017, which will increase the number of properties that the Council will need to license, with 2-storey buildings included in addition to 3-storey plus. The financial implications cannot be assessed yet until we have established the number of properties to be licenced.
Investment Properties – The budget proposed for 2018/19 reflects a prudent view on future income. However, the income generated from the Council’s property portfolio is the 2nd largest source of income and the loss of existing tenants/default does present an ongoing risk to the Council’s budget.
New Homes Bonus – The government are intending to consult on further measures designed to significantly reduce payments and influence planning decisions. These present considerable financial risk that could impact on the Medium Term Financial projection. In the short term, the budget is considered to reflect a prudent sum for future allocations of business payments.
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6. Looking Forward
The Council, along with the other Buckinghamshire authorities are currently awaiting a decision from the Minister for Housing, Communities and Local Government about the future structure of local government for Buckinghamshire and whether the existing two-tier system should be replaced with either 1 or 2 unitary councils.
In the event that there is an announcement to continue with a single authority, then this is expected to be implemented by April 2020. The respective Councils plans and budgets do not reflect the impact of any change but will be reviewed if an announcement is made.
Like other local authorities, the district has faced an unprecedented reduction in government funding as part of the government’s ongoing austerity agenda.
In the current 4 year spending review (2018/19 – 2021/22) period, the Council faces a reduction in its overall share of central government grant funding. By 2019/20, the Council will no longer be receiving any Revenue Support Grant.
Further information about the accounts is available, including alternative languages or font size. Please write to Wycombe District Council, Queen Victoria Road, High Wycombe,
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STATEMENT OF RESPONSIBILITIES
The Council’s Responsibilities
The Council is required to:
Make arrangements for the proper administration of its financial affairs and to secure that one of its officers has the responsibility for the administration of those affairs. In this Council, that officer is the Head of Finance and Commercial.
Manage its affairs to secure economic, efficient and effective use of resources and safeguard its assets
Approve the Statement of Accounts
The Head of Finance and Commercial Responsibilities
The Head of Finance and Commercial is responsible for the preparation of the Council’s
Statement of Accounts in accordance with proper practices as set out in the Code of Practice
on Local Authority Accounting in the United Kingdom (“the Code”).
In preparing this Statement of Accounts, the Head of finance and Commercial has:
Selected suitable accounting policies and then applied them consistently;
Made judgments and estimates that were reasonable and prudent;
Complied with the local authority Code
The Head of Finance and Commercial has also:
Kept proper accounting records which were up to date;
Taken reasonable steps for the prevention and detection of fraud and other irregularities
I confirm that the Statement of Accounts presents a true and fair view of the financial position
of the Council as at 31 March 2018 and its income and expenditure for the year then ended.
Signed: Head of Finance and Commercial
Date: 26 July 2018
Certificate of Approval – Chair of Audit Committee
The Statement of Accounts was approved by Wycombe District Council’s Audit Committee.
Signed: Chair of Audit Committee
Date: 26 July 2018
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Comprehensive Income and Expenditure Account
Gross
Expenditure
£'000
Gross
Income
£'000
Net
Expenditure
£'000 NOTE
Gross
Expenditure
£'000
Gross
Income
£'000
Net
Expenditure
£'000
5,962 (2,212) 3,750 Leader 4,189 (721) 3,468
1,643 (1,182) 461 Economic Development and Regeneration 1,839 (1,190) 649
4,319 (1,095) 3,224 Community 6,940 (1,658) 5,282
3,475 (1,329) 2,146 Housing Services - General Fund 5,386 (2,194) 3,192
8,456 (4,179) 4,277 Environment 9,526 (5,053) 4,473
6,123 (5,055) 1,068 Planning & Sustainability 7,155 (2,927) 4,228
4,075 0 4,075 HR, ICT and Customer Services 4,392 (704) 3,688
49,861 (47,433) 2,428 Finance 46,974 (45,229) 1,745
(177) (171) (348) Non Distributed Costs (77) (241) (318)
83,737 (62,657) 21,081 Cost of Services 7 86,324 (59,917) 26,407
614 Other Operating Expenditure 8 (2,666)
(9,183) Financing & Investment Income & Expenditure 9 (7,605)
(21,098) Taxation & Non-Specific Grant Income 10 (26,627)
(8,586) (Surplus) on Provision of Services (10,491)
173
Deficit/(Surplus) on Revaluation of Property, Plant
and Equipment assets (12,989)
9,420Actuarial Losses/(Gains) on Pension Assets /
Liabilities28b (8,118)
9,593 Other Comprehensive Income and Expenditure (21,107)
1,007 Total Comprehensive Income and Expenditure (31,598)
2016/17 Restated 2017/18
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Statement of Movements in Reserves
General
Fund
Balance
Earmarked
Reserve
Capital
Receipts
Reserve
Capital
Grants
Unapplied
Total Usable
Reserves
Unusable
Reserves
Total
Reserves
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Movement in Reserves 2016/17Balance as at 31 March 2016 9,537 41,705 15,310 3,592 70,144 125,131 195,275
Movement in reserves during 2015/16
Total Comprehensive Expenditure and (Income) 8,587 0 0 0 8,587 (9,593) (1,006)
Adjustments from income & expenditure charged
under the accounting basis to the funding basis(6,306) 0 3,019 1,418 (1,869) 1,869 0
Transfers to/from Earmarked Reserves (2,081) (4,817) 0 (6,898) 6,898 0
Increase or Decrease in 2016/17 201 (4,817) 3,019 1,418 (180) (826) (1,006)
Balance at 31 March 2017 carried forward 9,738 36,888 18,329 5,010 69,964 124,305 194,270
Movement in Reserves 2017/18Balance as at 31 March 2017 9,738 36,888 18,329 5,010 69,964 124,305 194,269
Movement in reserves during 2017/18
Total Comprehensive Expenditure and (Income) 10,491 0 0 0 10,491 21,107 31,598
Adjustments from income & expenditure charged
under the accounting basis to the funding basis(5,496) (1,484) 2,439 (4,541) 4,541 0
Transfers to/from Reserves (4,885) 3,356 (1,529) 1,529 0
Increase or (Decrease) in 2017/18 110 3,356 (1,484) 2,439 4,421 27,177 31,598
Balance at 31 March 2018 carried forward 9,848 40,244 16,845 7,449 74,385 151,482 225,868
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Balance Sheet as at 31 March 2018
31 March 2017
£'000 Note £'000 £'000
NON-CURRENT ASSETS
77,135 Property, Plant and Equipment 12a 87,762
780 Heritage Assets 785
120,508 Investment Properties 13b 130,504
138 Intangible Assets 51
6,000 Investments 13,000
13,466 Long Term Debtors 15a 10,960
218,027 TOTAL LONG TERM ASSETS 243,062
CURRENT ASSETS
0 Assets Held for Sale 432
0 Available for Sale Investments 7,061
41,323 Investments (Short Term) 40,516
7,789 Short Term Debtors 15b 12,173
28,078 Cash and Cash Equivalents 15c 19,311
77,190 TOTAL CURRENT ASSETS 79,493
295,217 TOTAL ASSETS 322,555
(798) Finance Leases (763)
(26,741) Short Term Creditors & Receipts in Advance 15d (25,625)
(3,260) Provisions 16 (5,018)
(30,799) TOTAL CURRENT LIABILITIES (31,406)
264,418 TOTAL ASSETS LESS CURRENT LIABILITIES 291,149
NON-CURRENT LIABILITIES
(3,229) Other Payables 17 (2,756)
(66,918) Liability related to Defined Benefit Pension Scheme 28c (62,525)
(70,147) (65,281)
194,271 225,868
31 March 2018
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Balance Sheet as at 31 March 2018
31 March 2017
£'000 Note £'000 £'000
FINANCED BY:
USABLE RESERVES
9,738 General Fund Balance 18b 9,848
36,888 Earmarked Reserves 18c 40,244
18,329 Capital Receipts Reserve 18d 16,844
5,010 Capital Grants Unapplied 18e 7,449
69,965 TOTAL USABLE RESERVES 74,384
UNUSABLE RESERVES
178,567 Capital Adjustment Account 19b 189,681
13,086 Revaluation Reserve 19c 23,932
1,347 Deferred Capital Receipts 19d 1,821
(66,918) Pensions Reserve 19e (62,525)
0 Financial Instrument Adjustment Account (439)
(1,528) Collection Fund Adjustment Account (738)
(248) Accumulated Absences Reserve (248)
124,307 TOTAL UNUSABLE RESERVES 151,484
194,271 TOTAL RESERVES 225,868
31 March 2018
Signed Signed
Head of Finance and Commercial Chair of Audit Committee Date 26 July 2018 Date 26 July 2018
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Cash Flow Statement for the Year Ended 31 March 2018
2016/17 2017/18
£'000 Note £'000
(8,587) Net (Surplus) on the Provision of Services (10,491)
(5,359) Adjustment to net (Surplus) on the provision of services for non cash movements 20a (1,626)
1,894Adjustment for items included in the net Deficit on the provision of services that are investing and
financing activities20a 4,819
(12,052) Net Cash Used from Operating Activities 20a (7,298)
4,288 Net Cash Used from Investing Activities 20b 14,602
(1,654) Net Cash Used from Financing Activities 20c 1,462
(9,418) Movement in Cash and Cash Equivalents 8,766
(18,660) Cash and cash equivalents at the beginning of the reporting period (28,078)
(28,078) Cash and cash equivalents at the end of the reporting period (19,311)
Financial
Activity in
Year
Financial
Activity in
Year
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NOTES TO THE CORE FINANCIAL STATEMENTS
1. Accounting Policies
A General Principles
The Statement of Accounts summarises the Council’s transactions for the 2017/18 financial year
and its position at the year-end of 31 March 2018. The Council is required to prepare an Annual
Statement of Accounts by the Accounts & Audit Regulations 2015, which require the accounts to be
prepared in accordance with proper accounting practices. These practices primarily compromise the
Code of Practice on Local Authority Accounting in the United Kingdom 2017/18 supported by
International Financial Reporting Standards (IFRS).
The accounting convention adopted in the Statement of Accounts is principally historical cost,
modified by the revaluation of certain categories of non-current assets and financial instruments.
The Accounts has been prepared in accordance with the fundamental concepts: Going Concern;
Primacy of Legislative Requirements and Accruals of Income and Expenditure.
B Accruals of Income and Expenditure
Activity is accounted for in the year that it takes place, not simply when cash payments are made or
received. In particular:
Revenue from the sale of goods is recognised when the Council transfers significant risks and
rewards of ownership to the purchase and it is probable that economic benefits or service potential
associated with the transaction will flow to the Council.
Revenue from the provision of services is recognised when the Council can measure reliably the
percentage of completion of the transaction and it is probable that economic benefits or service
potential associated with the transaction will flow to the Council.
Expenses in relation to services received (including services provided by employees) are recorded
as expenditure when the services are received rather than when payments are made.
Interest receivable on investments and payable on borrowings is accounted for respectively as
income and expenditure on the basis of the effective interest rate for the relevant financial
instruments, rather than the cash flows fixed or determined by the contract.
Where revenue and expenditure have been recognised, but cash has not been received or paid, a
debtor or creditor for the relevant amount is recorded in the Balance Sheet. Where debts may not
be settled, the balance of debtors is written down and a charge made to revenue for the income that
might not be collected.
C Provisions
Provisions are made where an event has taken place that gives the Council a legal or constructive
obligation that probably requires settlement by a transfer of economic benefits and a reliable
estimate can be made of the amount of the obligation, but where the timing of the transfer is
uncertain.
Provisions are charged as an expense to the appropriate service revenue account in the year that
the Council becomes aware of the obligation, and are measured at the best estimate at the balance
sheet date of expenditure required to settle the obligation, taking into account relevant risks and
uncertainties.
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When payments are eventually made, they are charged to the provision carried in the Balance
Sheet. Estimated settlements are reviewed each financial year.
D Reserves
The Council sets aside specific amounts as reserves for future policy purposes or to cover
contingencies. Reserves are created by charging the General Fund Balance in the Movement in
Reserves Statement.
When expenditure, to be financed from a reserve is incurred, it is charged to the appropriate service
in that year against the Surplus or Deficit on the Provision of Services in the Comprehensive Income
and Expenditure Statement. The reserve is then credited to the General Fund Balance in the
Movement in Reserves Statement, so that there is no net charge against Council Tax for the
expenditure.
Certain reserves are maintained purely for accounting purposes for non-current assets, financial
instruments, collection fund, retirement and employee benefits and do not represent usable
resources for the Council. Their use is governed by statutory and/or CIPFA guidance and are
explained in the relevant policies.
E Employee Benefits
Benefits Payable during Employment
Short-term employee benefits are those due to be settled within 12 months of the year-end. They
includes benefits such as wages and salaries, paid annual leave and paid sick leave and non-
monetary benefits in lieu of salary (e.g. nursery vouchers) for current employees and are recognised
as an expense for services in the year in which employees render service to the Council.
An accrual is made for the cost of holiday entitlements (or any form of leave, e.g. time off in lieu),
earned by employees but yet to be taken before the year-end, which employees can carry forward
into the next financial year. The accrual is charged to the Surplus or Deficit on the Provision of
Services, but then reversed out through the Movement in Reserves Statement, so that holiday
benefits are charged to the General Fund in the financial year in which the holiday absence occurs.
Termination Benefits
Termination benefits are amounts payable as a result of a decision by the Council to terminate an
officer’s employment before the normal retirement date or an officer’s decision to accept voluntary
redundancy. It is charged on an accruals basis to the Comprehensive Income and Expenditure
Statement at the earlier of when the Council can no longer withdraw the offer of those benefits or
when the Council recognises costs of a restructuring which include the payment of termination
benefits
Post-Employment Benefits
The Local Government Pension Scheme
Employees of the Council are members of the Local Government Pension Scheme administered by
Buckinghamshire County Council and is accounted for as a defined benefits scheme:
The liabilities of the Buckinghamshire County Council pension fund attributable to the Council are
included in the Balance Sheet on an actuarial basis, using the projected unit method – i.e. an
assessment of the future payments that will be made in relation to retirement benefits earned to date
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by employees, based on assumptions about mortality rates, employee turnover rates, etc. and
projections or projected earnings for current employees.
Liabilities are discounted to their value at current prices, using a discount rate determined by the
Actuary (based on the market yields on high quality corporate bonds).
The assets of Buckinghamshire County Council pension fund attributable to the Council are included
in the Balance Sheet at their fair value, using the following methods:
- Quoted securities – current bid price
- Unquoted securities – professional estimate
- Unitised securities – current bid price
- Property – market value
The change in the net pension’s liability is analysed into the following components:
Current Service Cost – the increase in liabilities as a result of years of service earned this
year, allocated in the Comprehensive Income and Expenditure Statement to the services for
which the employees worked.
Past Service Cost – the increase in liabilities as a result of a scheme amendment or
curtailment, who effect relates to years of service earned in earlier years, debited or credited
to the Surplus or Deficit on the Provision of Services in the Comprehensive Income and
Expenditure Statement.
Net Interest Cost – the expected change in the present value of net liabilities that arises from
the passage of time, charged to the Financial and Investment Income and Expenditure line
in the Comprehensive Income and Expenditure Statement.
Return on Assets – excluding amounts included in net interest on the net defined benefit
liability, charged to the financing and Investment Income and Expenditure line in the
Comprehensive Income and Expenditure Statement.
Actuarial Gains and Losses – changes in the net pensions liability that arise because events
have not coincided with assumptions made at the last actuarial valuation or because the
actuaries have updated their assumption, debited/credited to the Pensions Reserve.
Contributions paid to Buckinghamshire County Council pension fund – cash paid as
employer’s contributions to the pension fund in settlement of liabilities, not accounted for as
an expense.
In relation to retirement benefits, statutory provisions require the General Fund balance to be
charged with the amount payable by the Council to the pension fund or directly to pensioners in the
year as distinct from the amount calculated according to the relevant accounting standards.
In the Movement in Reserves Statement there are appropriations to and from the Pensions Reserve
to remove the debits and credits for retirement benefits charged in the Comprehensive Income and
Expenditure Account and replace them with debits for the cash paid to the pension fund and
pensioners and any such amounts payable but unpaid at the year-end. The negative balance that
arises on the Pensions Reserve thereby measures the beneficial impact to the General Fund of
being required to account for retirement benefits on the basis of cash flows, rather than as benefits
as earned by employees.
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Discretionary Benefits
The Council also has restricted powers to make discretionary awards of retirement benefits in the
event of early retirements. Any liabilities estimated to arise as a result of an award to any member
of staff are accrued in the year of the decision to make the award and accounted for using the same
policies as are applied to the Local Government Pension Scheme.
F Value Added Tax (VAT)
Income and Expenditure excludes any amounts related to VAT, as all VAT collected is payable to
HM Revenue & Customs, and all VAT paid is recoverable from it.
G Overheads
The cost of overheads and support services are managed separately, therefore these service segments are reported separately in accordance with the Council’s arrangements for accountability and financial performance.
H Intangible Assets
Expenditure on non-monetary assets that do not have physical substance but are controlled by the
Council as a result of past events (e.g. software licences), are only recognised on the Balance Sheet
when they are purchased or where internally developed and the Council can demonstrate that the
asset will generate future economic benefits or deliver service benefits.
Intangible assets are measured initially at cost. Amounts are only revalued where the fair value of
the assets held by the Council can be determined by reference to an active market. In practice, no
intangible asset held by Council meets this criterion, and they are therefore carried at amortised
cost. Intangible assets are amortised over their useful life to the relevant service line in the
Comprehensive Income and Expenditure Statement. An asset is tested for impairment whenever
there is an indication that the asset might be impaired and any losses recognised are posted to the
relevant service line in the Comprehensive Income and Expenditure Statement. Any gain or loss
arising on the disposal or abandonment of an intangible asset is posted to the net loss on disposal
of non-current assets line in the Comprehensive Income and Expenditure Statement.
Where expenditure on intangible assets qualifies as capital expenditure for statutory purposes
disposal gains and losses are not permitted to have an impact on the General Fund Balance.
The gains and losses are therefore reversed out of the General Fund Balance in the Movement in
Reserves Statement and posted to the Capital Adjustment Account and (for any sale proceeds
greater than £10,000) the Capital Receipts Reserve.
I Property, Plant and Equipment (PPE)
Assets that have physical substance and are held for use in the production or supply of goods or
services, for rental to others or for administrative purposes, and that are expected to be used during
more than one financial year, are classified as PPE.
Recognition
Expenditure on the acquisition, creation or enhancement of PPE is capitalised on an accruals basis,
provided that it increases the value of the asset and that it yields benefits to the council and the
services it provides for more than on financial year.
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Measurement
Assets are initially measured at cost, comprising:
- The purchase price
- Any costs attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. The Council does not capitalise borrowing costs incurred whilst assets are under construction. Assets are then carried in the Balance Sheet using the following measurement bases:
-
Infrastructure, community assets, plan, vehicles and equipment and assets under construction – historical cost
All other assets – fair value, determined as the amount that would be paid for the asset in its existing use (existing use value – EUV)
Where there is no market-based evidence of fair value, because of the specialist nature of an asset,
depreciated replacement cost (DRC) is used as an estimate of fair value.
Assets included in the Balance Sheet at fair value are revalued sufficiently regularly to ensure that
their carrying amount is not materially different from their fair value at the year-end, but as a
minimum every five year. Increases in valuations are reflected in the Revaluation Reserve to
recognise unrealised gains. In year gains will be credited to the Comprehensive Income and
Expenditure Statement where they arise from the reversal of a loss previously charged to a service.
Where decreases in value are identified, they are accounted for as follows:
- Where there is an opening balance of revaluation gains for the asset in the Revaluation Reserve, the carrying amount of the asset is written down against that balance (up to the amount of the accumulated gains)
- Where there is no balance or an insufficient balance in the Revaluation Reserve, the carrying amount of the asset is written down against the relevant service lines in the Comprehensive Income and Expenditure Statement. .
Impairment
Assets are assessed at each year-end as to whether there is any indication that an asset may be
impaired.
Where indications exist and any possible differences are estimated to be material, the recoverable
amount of the asset is estimated and, where this is less than the carrying amount of the asset, any
impairment loss is recognised for the shortfall.
When impairment losses are identified, they are accounted for in the same way as revaluation
decreases.
Where an impairment loss is reversed subsequently, the reversal is credited to the relevant service
line(s) in the Comprehensive Income and Expenditure Statement, up to the amount of the original
loss, adjusted for depreciation that would have been charged if the loss had not been recognised.
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Depreciation
Depreciation is provided for on all Property, Plant and Equipment assets by the systematic allocation
of their depreciable amounts over their useful lives. An exception is made for assets without a
determinable finite useful life (i.e. freehold and certain Community Assets), and assets that are not
yet available for use (i.e. assets under construction). Newly acquired or completed assets are
depreciated in the year following acquisition or completion.
Depreciation is calculated on the straight-line allocation over the useful life of the asset.
Where an item of Property, Plant and Equipment asset has major components whose cost is
significant in relation to the total cost of the item, the components are depreciated separately.
Revaluation gains are also depreciated, with an amount equal to the difference between current
value depreciation charged on assets and the depreciation that would have been chargeable based
on their historical cost being transferred each year from the Revaluation Reserve to the Capital
Adjustment Account.
Disposals
When an asset is disposed of or decommissioned, the carrying amount of the asset in the Balance
Sheet is written off to the Other Operating Expenditure line in the Comprehensive Income and
Expenditure Statement as part of the gain or loss on disposal. Receipts from Disposals (if any), are
credited to the same line in the Comprehensive Income & Expenditure Statement also as part of the
gain or loss on disposal.
All Revaluation Reserve balances in respect of the asset are transferred to the Capital Adjustment
Account. Amounts received for a disposal in excess of £10,000 are categorised as capital receipts.
The receipts are required to be credited to the Capital Receipts Reserve and can then only be used
to fund new capital investment or set aside to reduce the Council’s underlying need to borrow (the
Capital Financing Requirement). Receipts are appropriated to the reserve from the General Fund
Balance in the Movement in Reserves Statement.
The written-off value of disposals is not a charge against Council Tax, as the cost of non-current
assets is fully provided for under separate arrangements for capital financing. Accounts are
appropriated to the Capital Adjustment Account from the General Fund Balance in the Movement in
Reserves Statement.
J Charges to Revenue for Non-Current Assets
Services, support services and trading accounts are debited with the following amounts to record
the cost of holding non-current assets during the year:
- Depreciation attributable to the assets used by the relevant service
- Revaluation and impairment losses on assets used by the service where there are no
accumulated gains in the Revaluation Reserve against which the losses can be written off
- Amortisation of intangible assets attributable to the service
The Council is not required to raise Council Tax to fund depreciation, revaluation and impairment
losses or amortisations. However, it is required to make a Minimum Revenue Provision (MRP) from
revenue towards the reduction in its overall borrowing requirement.
Depreciation, revaluation and impairment losses and amortisations are therefore replaced by this
contribution in the General Fund Balance by way of an adjusting transaction within the Capital
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Adjustment Account in the Movement in Reserves Statement for the difference between the two
methods.
K REFCUS (Revenue Expenditure Funded from Capital under Statute)
Expenditure incurred during the year that may be capitalised under statutory provisions but that
does not result in the creation of a non-current asset has been charged as expenditure to the
relevant service in the Comprehensive Income and Expenditure Statement in the year. A transfer
in the Movement in Reserves Statement from the General Fund Balance to the Capital Adjustment
Account then reverses out the amounts charged so that there is no impact on the level of Council
Tax.
L Lease Classification
Leases are classified as finance leases where the terms of the lease transfer substantially all the
risks and rewards incidental to ownership of the property, plan or equipment from the lessor to the
lessee. All other leases are classified as operating leases.
Where a lease covers both land and buildings, the land and buildings elements are considered
separately for classification.
Arrangements that do not have the legal status of a lease but convey a right to use an asset in return
for payment are accounted for under this policy where fulfilment of the arrangement is dependent
on the use of specific assets.
The Council as Lessee
Finance Leases
Property, plant and equipment held under finance leases is recognised on the Balance Sheet at the
commencement of the lease at its fair value, measured at the lease’s inception (or the present value
of the minimum lease payments, if lower). The asset recognised is matched by a liability for the
obligation to pay the lessor. Initial direct costs of the Council are added to the carrying amount of
the asset. Premiums paid on entry into a lease are applied to writing down the lease liability.
Contingent rents are charged as expenses in the periods in which they are incurred.
Lease payments are apportioned between:
• A charge for the acquisition of the interest in the property, plant or equipment – applied to
write down the lease liability.
• A finance charge (debited to the Financing and Investment Income and Expenditure line in
the Comprehensive Income and Expenditure Statement).
Property, Plant and Equipment recognised under finance leases is recognised at the lower of the
present value of the minimum lease payments and the fair value. They are accounted for using the
policies applied generally to such assets, subject to depreciation being charged over the lease term
if this is shorter than the asset’s estimated useful life (where ownership of the asset does not transfer
to the Council at the end of the lease period).
The Council is not required to raise Council Tax to cover depreciation or revaluation and impairment
losses arising on leased assets. Instead, a prudent annual contribution is made from revenue funds
towards the deemed capital investment in accordance with statutory requirements. Depreciation
and revaluation and impairment losses are transferred to the Capital Adjustment Account in the
Movement in Reserves Statement so that there is no charge against Council Tax.
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Operating Leases
Rentals paid under operating leases are charged to the Comprehensive Income and Expenditure
Statement as an expense of the services benefitting from use of the leased property, plant or
equipment.
The Council as Lessor
Finance Leases
Where the Council grants a finance lease over a property or an item of plan or equipment, the
relevant asset is written out of the Balance Sheet as a disposal.
At the commencement of the lease, the carrying amount of the asset in the Balance Sheet is written
off to the Other Operating Expenditure line in the Comprehensive Income and Expenditure
Statement. A gain, representing the Council’s net investment in the lease, is credited to the same
line in the Comprehensive Income and Expenditure Statement matched by a lease (long-term
debtor) asset in the Balance Sheet.
Lease rentals receivable are apportioned between:
• A charge for the acquisition of the interest in the property applied to write down the lease
debtor (together with any premiums received).
• Finance income credited to the Comprehensive Income and Expenditure Statement.
The gain (Disposal Value less the lease debtor) is not permitted by statute to have an impact on the
General Fund Balance. The gain is treated as a capital receipt. Where a premium has been
received this is posted to the Capital Receipts Reserve. Where the amount due in relation of the
lease asset is to be settled by the payment of rentals in future financial years, this is posted out of
the General Fund Statement to Deferred Capital Receipts Reserve. When the future rentals are
received, the element for the capital receipt for the disposal of the asset is used to write down the
lease debtor and the deferred capital receipts are transferred to the Capital Receipt Reserve.
Operating Leases
Where the Council grants an operating lease over a property or an item of plant or equipment, the
asset is retained in the Balance Sheet.
Rental income is credited on a straight-line basis to the Comprehensive Income and Expenditure
Statement.
M Financial Instruments
Financial Liabilities
Financial liabilities are recognised on the Balance Sheet when the Council becomes a party to the
contractual provisions of a financial instrument and are initially measured at fair value and are carried
at the amortised cost. Annual charges to the Financing and Investment Income and Expenditure
line in the Comprehensive Income and Expenditure Statement for interest payable are based on the
carrying amount of the liability, multiplied by the effective rates of interest for the instrument. The
effective interest rate is the rate that exactly discounts estimated future cash payments over the life
of the instrument to the amount at which it was originally recognised.
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Financial Assets
Financial assets are classified into two types:
- Loans and receivables – assets that have fixed or determinable payments but are not quoted in an active market
- Available-for-sale assets – assets that have a quoted market price and/or do not have fixed or determinable payments
Loans and Receivables
Loans and receivables are recognised on the Balance Sheet when the Council becomes a party to
the contractual provisions of a financial instrument and are initially measured at fair value. They are
subsequently measured at their amortised cost. Annual credits to the Financing and Investment
and Expenditure line in the Comprehensive Income and Expenditure statement for interest
receivable are based on the carrying amount of the asset multiplied by the effective rate of interest
for the instrument. For most of the loans that the Council has made, this means that the amount
presented in the Balance Sheet is the outstanding principal receivable (plus accrued interest) and
interest credited to the Comprehensive Income and Expenditure Statement is the amount receivable
for the year in the loan agreement.
Where assets are identified as impaired because of a likelihood arising from a past event that income
due under the contract will not be made, the asset is written down and a charge made to the relevant
service (for receivables specific to that service) or the Financing and Investment Income and
Expenditure line in the Comprehensive Income and Expenditure Statement. The impairment loss
is measured as the difference between the carrying amount and the present value of the revised
future cash flows discounted at the asset’s original effective interest rate.
Any gains and losses that arise on the de-recognition of an asset are credited or debited to the
Financing and Investment Income and Expenditure line in the Comprehensive Income and
Expenditure Statement.
N Government Grants and Contributions
Whether paid on account, by instalments or in arrears, government grants and third party contributions and donations are recognised as due to the Council when there is reasonable assurance that: The Council will comply with the conditions attached to the payments; and the grants or contributions will be received. Amounts recognised as due to the Council are not credited to the Comprehensive Income and Expenditure Statement until conditions attached to the grant or contribution have been satisfied. Conditions are stipulations that must be met by the recipient as specified, or the grant must be repaid. Monies advanced as grants and contributions for which conditions have not been satisfied are carried in the Balance Sheet as creditors (Creditors or Capital Grants Receipts in Advance). When conditions are satisfied, the grant or contribution is credited to the relevant service segment line (revenue grants and contributions attributable to specific services) or Taxation and Non-Specific Grant Income (non-ring-fenced revenue grants and all capital grants) in the Comprehensive Income and Expenditure Statement. Where revenue grants that have been credited to the Comprehensive Income and Expenditure Statement are intended to meet specific service expenditure that has not yet been incurred, an
34 | P a g e
equivalent amount is transferred from the General Fund Balance to an Earmarked Reserve in the Statement of Movement in Reserves. A transfer back is made in future years to match expenditure as it is incurred. Where capital grants are credited to the Comprehensive Income and Expenditure Statement, they
are reversed out of the General Fund Balance in the Movement in Reserves Statement. Where the
grant has yet to be used to finance capital expenditure, it is posted to the Capital Grants Unapplied
Reserve. Amounts in the Capital Grants Unapplied Reserve are then transferred to the Capital
Adjustment Account once they have been applied to fund capital expenditure.
O Community Infrastructure Levy (CIL)
The Council has elected to charge a Community Infrastructure Levy (CIL). The levy will be charged
on new builds (chargeable developments for the Council) with appropriate planning consent. The
Council charges for and collects the levy, which is a planning charge. The income from the levy will
be used to fund a number of infrastructure projects (these include transport, flood defences and
schools) to support the development of the area.
CIL is received without outstanding conditions; it is therefore recognised at the commencement date
of the chargeable development in the Comprehensive Income and Expenditure Statement in
accordance with the accounting policy for government grants and contributions set out above. CIL
charges will be largely used to fund capital expenditure. However, a small proportion of the charges
may be used to fund revenue expenditure.
P Cash and Cash Equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are investments that mature in no more than 1 month from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. In the Cash Flow Statement, cash and cash equivalents are shown net of bank overdrafts that are
repayable on demand and form an integral part of the Council’s cash management.
Q Prior Period Adjustments, Changes in Accounting Policies, Estimates and Errors
Prior period adjustments may arise as a result of a change in accounting policies or to correct a
material error. Changes in accounting estimates are accounted for prospectively, i.e. in the current
and future years affected by the change, and do not give rise to a prior period adjustment.
Where a change in accounting policies is made, it is applied retrospectively (unless stated
otherwise), by adjusting opening balances and comparative amounts for the prior period as if the
new policy had always been applied. Material errors discovered in prior period figures are corrected
retrospectively by amending opening balances and comparative amounts for the prior period.
R Investment Property
Investment properties are those that are used solely to earn rentals and/or for capital appreciation.
The definition is not met if the property is used in any way to facilitate the delivery of services or
production of goods or is held for sale. Investment properties are measured initially at cost and
subsequently at fair value, based on the amount at which the asset could be exchanged between
knowledgeable parties at arm’s-length. Properties are not depreciated but are revalued as part of
a five year rolling programme, according to market conditions at the end of the year. Gains and
losses on revaluation are posted to the Financing and Investment Income and Expenditure line in
35 | P a g e
the Comprehensive Income and Expenditure Statement. The same treatment is applied to gains
and losses on disposal.
Rentals received in relation to investment properties are credited to the Financial and Investment
Income line and result in a gain for the General Fund Balance. However, revaluation and disposal
gains and losses are not permitted by statutory arrangements to have an impact on the General
Fund Balance. The gains and losses are therefore reversed out of the General Fund Balance in the
Movement in Reserves Statement and posted to the Capital Adjustment Account and (for any sale
proceeds greater than £10,000) the Capital Receipts Reserve.
S Heritage Assets
Heritage assets consist solely of the Council’s museum collection consisting of fine art and furniture.
The carrying amounts of heritage assets are reviewed where there is evidence of impairment, e.g.
when an item has suffered physical deterioration or breakage, or where doubts arise as to its
authenticity. Any such impairment is recognised and measured in accordance with the Council’s
general policies on impairment.
The museum holds a small number of valuable paintings including in particular one by Joachim
Wtewael of Lazarus Rising from his sick bed and one by John Hamilton Mortimer of St Thomas
preaching to the Ancient Britons. The museum collection of chairs and other furniture comprises
over 300 items and is the most comprehensive collection of Thames valley chairs in the UK. Notable
among items is the so called Pitt Chair bought for £25,000 from a private dealer with grant in aid in
2007. The Dutch Casket, a stumpwork casket is one of less than 100 in the UK and represents one
of the museum's most significant treasures. It is held in reserve collections because of its
vulnerability to light damage in the present museum displays.
T Events after the Balance Sheet Date
Events after the Balance Sheet date are those events, both favourable and unfavourable, that occur between the end of the reporting period and the date when the Statement of Accounts is authorised for issue. Events taking place after the date of authorisation for issue are not reflected in the Statement of Accounts. Two types of events can be identified:
• Those that provide evidence of conditions that existed at the end of the reporting period – the Statement of Accounts is adjusted to reflect such events.
• Those that are indicative of conditions that arose after the reporting period – the Statement of Accounts is not adjusted to reflect such events, but where a category of events would have a material effect, disclosure is made in the notes of the nature of the events and their estimated financial effect.
U Materiality and Exceptional Item of Income and Expense
When items of income and expense are material, their nature and amount is disclosed separately,
either on the face of the Comprehensive Income and Expenditure Account or in the notes to the
accounts, depending on how significant the items are to an understanding of the Council’s financial
performance.
V Contingent Liabilities
A contingent liability arises where an event has taken place that gives the Council a possible
obligation whose existence will only be confirmed by the occurrence or otherwise of uncertain future
events not wholly within the control of the Council. Contingent liabilities also arise in circumstances
where a provision would otherwise be made but either it is not probable that an outflow of resources
36 | P a g e
will be required or the amount of the obligation cannot be measured reliably. Contingent liabilities
are not recognised in the Balance Sheet but disclosed in a note to the accounts.
W Contingent Assets
A contingent asset arises where an event has taken place that gives the Council a possible asset
whose existence will only be confirmed by the occurrence or otherwise of uncertain future events,
not wholly within the control of the Council. Contingent assets are not recognised in the Balance
Sheet but disclosed in a note to the accounts where it is probably that there will be an inflow of
economic benefits or service potential.
X Accounting for Council Tax and Non-Domestic Rates (NDR)
Billing Councils in England are required by statute to maintain a separate fund for the collection and
distribution of amounts due in respect of Council Tax and NDR.
Council Tax collected belongs proportionately to the Council and the major preceptors. NDR
collected by the Council belongs to the Government (50%), the Council (40%) and preceptors (10%).
The Council’s share of Council Tax and NDR is recognised in the Comprehensive Income and
Expenditure Statement. However, regulations determine the amount of council tax and NDR that
must be included in the authority’s General Fund. Therefore, the difference between the income
included in the Comprehensive Income and Expenditure Statement and the amount required by
regulation to be credited to the General Fund is taken to the Collection Fund Adjustment Account
and included as a reconciling item in the Movement in Reserves Statement.
The Balance Sheet recognises debtors for unpaid Council Tax and NDR, and a debtor/creditor
position for each preceptor since the net cash paid to each preceptor in the year will not be equal to
its share of total Council Tax and NNDR income received.
2. Accounting Standards that have been issued but have not yet been adopted
The Code of Practice requires that the Authority discloses information relating to the impact of an accounting change that will be required by a new standard that has been issued but not yet adopted. This requirement applies to accounting standards that come into effect for financial years commencing on or before 1 January of the financial year in question (i.e. on or before 1 January 2018 for 2017/18). Disclosure requirements are expected to be included in a subsequent edition of the Code. Changes in the 2018/19 Code of Practice that will be introduced in future versions of the accounts include:
• Amendment to the reporting of Financial Instruments (IFRS 9) • Amendment to the reporting of Revenue from Contracts with Customers (IFRS 15)
3. Critical Judgements in applying Accounting Policies
In applying the accounting policies, the council has to make certain judgements about complex
transactions or those involving uncertainty about future events. The critical judgement in the
Statement of Accounts is the level of uncertainty about future levels of funding for local government.
However, the Council has planned to make savings and generate new income to compensate for
reduction in funding. These savings will result predominantly from efficiencies and not reduced
levels of services. The Council has determined that this uncertainty is not sufficient to provide an
indication that the assets of the Council might be impaired as a result of a need to close facilities
and reduce levels of service provision.
37 | P a g e
4. Assumptions made about the future and other major sources of uncertainty
The Statement of Accounts contains estimated figures, which are based on assumptions made by
the Council about the future that are otherwise uncertain. Estimates are made, taking into account
historical experience, current trends and other relevant factors. However, because balances cannot
be determined with certainty, actual results could be materially different from the assumption and
estimates. The items in the Council’s Balance Sheet at 31 March 2018, for which there is significant
risk of material adjustment in the forthcoming financial year are as follows:
Item Uncertainties Effect if actual results differ from
assumptions
Business Rates Appeals
Provision
The Council must meet its relevant
share of backdated business rate
appeals. A provision has been made
within the accounts, utilising Valuation
Office data and the analysis of
successful appeals to date as at the
end of the reporting period.
If the refunds payable are higher than
the provision, the difference will
reduce the balance on the Collection
Fund and reduce the Council’s share
of business rates income in future
years.
Pensions Liability Estimation of the net liability to pay
pensions depends on a number of
complex judgements relating to the
discount rate used, the rate at which
salaries are projected to increase
changes in the retirement ages,
mortality rates and expected returns
on pension assets. A firm of actuaries
is engaged to provide the Council with
expert advice about the assumption to
be applied.
The assumptions used are reviewed
yearly in respect of the calculation of
the net liability and triennially in
respect of the Council’s contributions
rate. Changes in assumptions may
increase the net liability and future
pension costs.
Property, Plant,
Equipment and
Investment Property
Assets are depreciated over useful lives that are dependent on assumptions about the levels of repairs and maintenance that will be incurred in relation to individual assets. Assets are subject to a 5 year rolling valuation and assumptions are made by the specialist valuer regarding market indicators and other data available to asses an asset's value
If the useful life of assets is reduced, depreciation increases and the carrying amount of the assets falls
A fall in value of the Council's asset would impact on the net worth of the Council, however would not impact n the Council's usable balances.
Provisions Provisions are estimated on the basis of current knowledge of the amount that will eventually be paid. It is possible that the amounts eventually paid may be more than expected.
If future liabilities exceed the amounts set aside, the additional amounts would have to be met from the Council’s general fund.
Debts Provisions have been made for debt owed to the Council for which payment is doubtful. In the current economic climate, it is not certain that the amount provided for will be adequate.
Provisions may not be adequate where there is a deterioration in collection rates caused by default i.e. debtors not being able to pay the amounts they owe the Council. These additional costs of default would have to be met from the Council’s general fund.
38 | P a g e
5. Events after the Balance Sheet Date
There have been no material events after the 31st March 2018 until the 26th July 2018 that require
disclosure.
6. Changes to Accounting Policy
As part of the annual review of accounting policies, the Head of Finance and Commercial under the
delegated authority part 3 of the constitution (Procedure Rules Standing Orders- Section G Financial
Regulations) has made changes to Overheads and Support Services policy as detailed below.
The Nature and Reasons for the change in Accounting Policy At Wycombe District Council (WDC), the corporate and support services (Finance, Legal &
Democratic services, HR, ICT & Shared services), are managed separately each having a separate
Cabinet Portfolio Holder and Head of Service. These services are reported separately to the Senior
Management Board and the Cabinet. The respective Heads of Service are accountable for
providing the service and its financial performance.
To ensure compliance with the code and to present a meaningful CIES for the user of the accounts,
the accounting policy for Overheads and Support Services has been amended. This will means that
the cost of these services will not be apportioned to the front line services and will be reported as a
separate service segment on the CIES.
The change impacts the CIES and the Expenditure and Funding Analysis as detailed below for
2016/17 audited figures.
Comprehensive Income & Expenditure Account
5,138 (2,212) 2,926 Leader 5,962 (2,212) 3,750 824 0 2,926 1,688 (1,182) 506 Economic Development and Regeneration 1,643 (1,182) 461 (44) 0 506 5,255 (1,095) 4,160 Community 4,319 (1,095) 3,223 (936) 0 4,160 4,153 (1,329) 2,824 Housing Services - General Fund 3,475 (1,329) 2,146 (679) 0 2,824 9,454 (4,179) 5,275 Environment 8,456 (4,179) 4,277 (998) 0 5,275 8,239 (5,055) 3,184 Planning & Sustainability 6,123 (5,055) 1,068 (2,116) 0 3,184
0 0 0 HR, ICT and Customer Services 4,075 0 4,075 4,075 0 0 49,957 (47,433) 2,524 Finance 49,861 (47,433) 2,428 (97) 0 2,524
(148) (171) (319) Non Distributed Costs (177) (171) (348) (28) 0 (319) 83,737 (62,657) 21,080 Cost of Services 83,737 (62,657) 21,080 0 0 21,080
Movement
Gross Expenditure
£'000
Gross Income £'000
Net Expenditure
£'000
2016/17 Audited Statement of Accounts 2016/17 (post change in accounting policy)
Gross Expenditure
£'000 Gross
Income £'000
Net Expenditure
£'000
Gross Expenditure
£'000 Gross Income
£'000
Net Expenditure
£'000
39 | P a g e
Net
expenditure
chargeable
to GF
Balances
Adjustments
between
funding and
accounting
basis
Net
expenditure
in the CIES Expenditure and Funding Analysis
Net
expenditure
chargeable to
GF Balances
Adjustments
between
funding and
accounting
basis
Net
expenditure in
the CIES
£'000 £'000 £'000 £'000 £'000 £'000
2,311 615.00 2,926 Leader 3,135 615 3,750
-3,903 4,409.00 506 Economic Development and Regeneration -3,948 4,409 461
3,923 237.00 4,160 Community 2,987 237 3,224
2,302 523.00 2,825 Housing Services - General Fund 1,623 523 2,146
6,443 -1,169.00 5,274 Environment 5,446 -1,169 4,277
3324 -140.00 3,184 Planning & Sustainability 1,208 -140 1,068
88 -88 0 HR, ICT and Customer Serivces 4,163 -88 4,075
1,603 921 2,524 Finance 1,506 921 2,427
0 -319 -319 Non Distributed Costs -28 -319 -347
16,091 4,989 21,080 Net cost of services 16,091 4,989 21,080
-16,292 -13,375 -29,667 Other income and expenditure -16,292 -13,375 -29,667
-201 -8,386 -8,587 Surplus or deficit -201 -8,386 -8,587
-9,537 Opening General Fund Balance at 31st March 2016 -9,537
-201 Less Deficit / (Surplus) on General Fund Balance -201
-9,738 Closing General Fund Balance at 31st March 2017 -9,738
2016/17 (Post change in accounting policy)2016/17 Audited Statement of Accounts
40 | P a g e
7 Expenditure and Funding Analysis
The Expenditure and Funding Analysis demonstrates how funding available to the authority for the year has
been used in providing services in comparison with those resources consumed or earned in accordance
with generally accepted accounting practices. The analysis also shows how this expenditure is allocated
for decision making purposes between the Council’s services.
Net
expenditure
chargeable to
GF Balances
Adjustments
between
funding and
accounting
basis
Net
expenditure in
the CIES
2017/18 £'000 £'000 £'000
Leader 3,129 338 3,468
Economic Development and Regeneration (3,968) 4,617 649
Community 2,432 2,850 5,282
Housing Services - General Fund 2,443 749 3,192
Environment 5,077 (604) 4,473
Planning & Sustainability 1,111 3,117 4,228
HR, ICT and Customer Serivces 5,239 (1,551) 3,688
Finance 1,350 395 1,745
Non Distributed Costs 0 (318) (318)
Net cost of services 16,813 9,595 26,407
Other income and expenditure (16,922) (19,976) (36,898)
Surplus or deficit (110) (10,381) (10,492)
Opening General Fund Balance at 31st Mar 2017 (9,738)
Less Deficit / (Surplus) on General Fund Balance (110)
Closing General Fund Balance at 31st Mar 2018 (9,848)
2016/17 Restated £'000 £'000 £'000
Leader 3,135 615 3,750
Economic Development and Regeneration (3,948) 4,409 461
Community 2,987 237 3,224
Housing Services - General Fund 1,623 523 2,146
Environment 5,446 (1,169) 4,277
Planning & Sustainability 1,208 (140) 1,068
HR, ICT and Customer Serivces 4,163 (88) 4,075
Finance 1,506 921 2,427
Non Distributed Costs (28) (319) (347)
Net cost of services 16,091 4,989 21,080
Other income and expenditure (16,292) (13,375) (29,667)
Surplus or deficit (201) (8,386) (8,587)
Opening General Fund Balance at 31st Mar 2016 (9,537)
Less Deficit / (Surplus) on General Fund Balance (201)
Closing General Fund Balance at 31st Mar 2017 (9,738)
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7a Note to the EFA – Adjustments between funding and accounting basis
2017/18 £'000 £'000 £'000 £'000
Leader 0 329 10 338
Economics Development and Regeneration 0 0 4,617 4,617
Community 2,663 174 13 2,850
Housing Services - General Fund 1,460 184 (895) 749
Environment 355 200 (1,158) (604)
Planning & Sustainability 2,579 506 32 3,117
HR, ICT and Customer Services (1,812) 197 64 (1,551)
Finance 0 314 81 395
Non Distributed Costs 0 (282) (36) (318)
Net Cost of Services 5,245 1,622 2,728 9,594
Other income and expenditure from the
Funding Analysis(19,976)
Difference between General Fund surplus or
deficit and Comprehensive Income and
Expenditure Statement Surplus or Deficit
(10,382)
2016/17 £'000 £'000 £'000 £'000
Leader 367 230 17 615
Economics Development and Regeneration 0 0 4,409 4,409
Community 94 156 (13) 237
Housing Services - General Fund 211 142 170 523
Environment 87 144 (1,400) (1,169)
Planning & Sustainability 1,594 363 (2,096) (140)
HR, ICT and Customer Services (30) 0 (58) (88)
Finance 87 156 679 921
Non Distributed Costs (196) (10) (113) (319)
Net Cost of Services 2,212 1,180 1,595 (4,989)
Other income and expenditure from the
Funding Analysis(13,375)
Difference between General Fund surplus or
deficit and Comprehensive Income and
Expenditure Statement Surplus or Deficit
(8,387)
Adjustments from General Fund to arrive
at the Comprehensive Income and
Expenditure Statement Amounts
Total
Adjustments
Other
Differences
Net change for
the Pensions
Adjustments
Adjustments
for Capital
Purposes
42 | P a g e
8. Other Operating Expenditure
Other operating Expenditure reported includes all levies payable and gains generated from in year
disposals of non-current assets.
9. Financing and Investment Income and Expenditure
10. Taxation and Non-specific Grant Income and Expenditure
This note consolidates non-specific grants and contributions receivable not identified to a
particular service area. Capital grants and contributions are credited to non-specific grant income
even if service specific. The note also shows the Council’s proportion of council tax and business
rates used to fund in year service activities.
31 Mar 17 31 Mar 18
£'000 £'000
2,508 Payment of Precepts to Parishes 2,714
(1,895) (Gains) on the disposal of non-current assets (5,381)
614 Total (2,666)
31 Mar 17 31 Mar 18
£'000 £'000
181 Interest Payable and Similar Charges 119
6,570 Pension adjustment - Interest Cost 5,697
(4,638) Pension Adjustment - Expected return on assets (3,917)
(559) Interest Receivable and Similar Income (220)
(9,183) Total (7,605)
Income and expenditure in relation to investment properties
and changes in their fair value(10,737) (9,284)
31 Mar 17 31 Mar 18
£'000 £'000
(11,786) Council Tax (12,125)
Collection Fund Adjustment Account 738
(3,665) New Homes Bonus (2,321)
(1,490) Revenue Support Grant (635)
(3,218) Non-Domestic Rates (3,125)
(319) Government Grants (not applicable to Specific Services) (3,093)
(620) Capital Grants and Contributions (1,686)
0 Community Infrastructure Levy (4,380)
(21,098) Total (26,627)
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11a. Adjustments between accounting basis and funding basis under Regulations 2017/18
General
Fund
Balance
£'000
Capital
Receipts
Reserve
£'000
Capital
Grants
Unapplied
£'000
Total
Usable
Reserves
£'000
Unusable
Reserves
£'000
Items impacting Unusable Capital Reserves
Reversal of Depreciation & Amortisation 2,329 0 0 2,329 (2,329)
Reversal of Impairment of Assets 473 0 0 473 (473)
Reversal of Revenue expenditure funded
from Capital under Statute5,183 0 0 5,183 (5,183)
Capital Grants Unapplied reversed to
Grants Unapplied Reserve(7,485) 0 5,839 (1,646) 1,646
Application of Capital Grants and
Contribution to finance Capital
Expenditure
0 0 (3,400) (3,400) 3,400
Reversal of Movement in Market Value
of Investment Properties(4,533) 0 0 (4,533) 4,533
Statutory Provision for the Repayment of
Debt(985) 0 0 (985) 985
Items impacting Usable Capital Receipts Reserve
Net gain/(loss) written off on sale or
disposal of Long Term Assets(5,381) 5,256 0 (125) 125
Financing of Capital Expenditure 0 (6,739) 0 (6,739) 6,739
Items impacting Pension Reserve
Employer's contributions payable to the
Pension Fund and retirement benefits
payable direct to pensioners
(1,610) 0 0 (1,610) 1,610
Reversal of Net charges made for
pensions- current Service cost 3,555 0 0 3,555 (3,555)
Reversal of Net charges (pensions -
Past Service cost & financing items) 1,780 0 0 1,780 (1,780)
Items impacting Other Reserves
Council's share of Movement in
Collection Fund Surplus/(Deficit)738 0 0 738 (738)
Reversal of unrealised losses on
Available for Sale Investment439 439 (439)
TOTAL Adjustments between
accounting basis & funding basis
under regulations 2017/18
(5,496) (1,484) 2,439 (4,541) 4,541
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11b. Adjustments between accounting basis and funding basis under Regulations 2016/17
General
Fund
Balance
£'000
Capital
Receipts
Reserve
£'000
Capital
Grants
Unapplied
£'000
Total
Usable
Reserves
£'000
Unusable
Reserves
£'000
Items impacting Unusable Capital Reserves
Reversal of Charges for depreciation
and revaluation losses of Long Term
Assets
2,104 0 0 2,104 (2,104)
Reversal of Revenue expenditure funded
from Capital under Statute2,426 0 0 2,426 (2,426)
Capital Grants Unapplied reversed to
Grants Unapplied Reserve(2,377) 0 2,377 0 0
Application of Capital grants &
Contributions to finance Capital
Expenditure
(1,253) 0 (959) (2,212) 2,212
Reversal of Movement in Market Value
of Investment Properties(6,290) 0 0 (6,290) 6,290
Statutory Provision for the Repayment of
Debt(1,326) 0 0 (1,326) 1,326
Items impacting Usable Capital Receipts Reserve
Net gain/(loss) written off on sale or
disposal of Long Term Assets(1,982) 6,241 0 4,259 (4,259)
Cost of Disposal 87 87 (87)
Financing of Capital Expenditure 0 (4,899) 0 (4,899) 4,899
Ttansfer from Deferred Capital Receipts 0 1,676 0 1,676 (1,676)
Items impacting Pension Reserve
Employer's contributions payable to the
Pension Fund and retirement benefits
payable direct to pensioners
(1,256) 0 0 (1,256) 1,256
Reversal of Net charges made for
pensions - current Service cost 2,505 0 0 2,505 (2,505)
Reversal of Net charges (pensions -
Past Service cost & financing items) 1,932 0 0 1,932 (1,932)
Items impacting Other Reserves
Write out of Glitner (72) 0 0 (72) 72
Councils share of Movement in
Collection Fund Surplus/(Deficit)(804) 0 0 (804) 804
TOTAL Adjustments between
accounting basis & funding basis
under regulations 2016/17
(6,306) 3,019 1,418 (1,869) 1,869
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12a Movement of Property, Plant and Equipment 2017-18
Land &
Buildings
Vehicle,
Plant &
Equip
Community
Assets
Surplus
Assets
Assets Under
Construction
Infrastructure
AssetsTotal Assets
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Cost or valuation
At 1 April 2017 63,015 18,462 1,364 100 2,063 6,490 91,494
Reversal of accumulated depreciation on
revaluation (454) (454)
Additions 1,526 1,096 0 0 1,049 0 3,671
Revaluation increases / (decreases)
recognised in the Revaluation Reserve9,074 0 631 0 0 0 9,705
Revaluation increases / (decreases)
recognised in the Surplus / Deficit on the
provisions of services
928 0 (14) 0 0 0 914
Other Transfers (1,258) (35) (5) 0 (1,575) 0 (2,873)
Other movements in cost or valuation 2,001 (5) (771) 0 175 0 1,400
At 31 March 2018 74,832 19,518 1,205 100 1,712 6,490 103,857
Accumulated Depreciation
At 1 April 2017 (1,578) (12,565) 0 0 0 (216) (14,359)
Reversal of accumulated depreciation on
revaluation 454 454
Depreciation Charge (603) (1,423) 0 0 0 (216) (2,242)
Depreciation Transfer 52 0 0 0 0 0 52
Depreciation on Disposal 0 0 0 0 0 0 0
At 31 March 2018 (1,675) (13,988) 0 0 0 (432) (16,095)
Balance Sheet Value at 31 March 2018 73,157 5,530 1,205 100 1,712 6,058 87,762
Balance Sheet Value at 1 April 2017 61,437 5,897 1,364 100 2,063 6,274 77,135
46 | P a g e
12b Movement of Property, Plant and Equipment 2016-17
Land &
Buildings
Vehicle,
Plant &
Equip
Community
Assets
Surplus
Assets
Assets Under
Construction
Infrastructure
AssetsTotal Assets
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Cost or valuation
At 1 April 2016 63,726 17,313 1,364 360 4,542 6,490 93,795
Additions 178 785 0 0 44 0 1,007
Revaluation increases / (decreases)
recognised in the Revaluation Reserve(3) 0 0 (170) 0 0 (173)
Revaluation increases / (decreases)
recognised in the Surplus / Deficit on the
provisions of services
(3) 0 0 (90) 0 0 (93)
Disposals (524) 0 0 0 (2,523) 0 (3,047)
Accumulated Depreciation written out
upon disposal0 0 0 0 0 0 0
Other Transfers (359) 364 0 0 0 0 5
At 31 March 2017 63,015 18,462 1,364 100 2,063 6,490 91,494
Accumulated Depreciation
At 1 April 2016 (1,065) (11,439) 0 0 0 0 (12,504)
Depreciation Charge (628) (1,126) 0 0 0 (216) (1,970)
Depreciation Transfer 109 0 0 0 0 0 109
Depreciation on Disposal 6 0 0 0 0 0 6
At 31 March 2017 (1,578) (12,565) 0 0 0 (216) (14,359)
Balance Sheet Value at 31 March 2017 61,437 5,897 1,364 100 2,063 6,274 77,135
Balance Sheet Value at 1 April 2016 62,661 5,874 1,364 360 4,542 6,490 81,291
47 | P a g e
12c Revaluations
Valuation Process for Non-Current Assets
The Authority carries out a rolling programme that ensures that all Property, Plant and
Equipment to be measured at fair value revalued at least every five years. Valuations are in
accordance with methodologies and bases for estimation set out in the professional standards
of the Royal Institution of Chartered Surveyors (RICS). The basis of valuing individual classes
of assets owned by the Council is detailed in the Statement of Accounting Policies.
The Council’s Operational Assets are valued externally by Wilkes Head and Eve, as part of
the rolling programme.
12d Information about Depreciation Methodologies
Depreciation and amortisation is charged over the useful life of an asset on a straight line
basis, on all assets, except non-operational land and buildings and community assets.
Buildings 40 years average
Intangible Assets 3 years average
Plant and Computer Equipment 3-5 years average
Community Assets have not been depreciated as they consist largely of freehold land; nor
have any Heritage Assets, which consist of works of art and other museum collections.
Land &
Buildings
Vehicle,
Plant &
Equip
Comm-
unity
Assets
Surplus
Assets
Assets
Under
Constr-
uction
Infra-
structure
Assets
Total
Assets
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Carried at historical cost
at 31st March 20180 5,530 0 0 1,712 6,058 13,300
Valued at current value
as at:
31st March 2018 13,254 0 631 0 0 0 13,885
31st March 2017 242 0 0 0 0 0 242
31st March 2016 8,544 0 0 0 0 0 8,544
31st March 2015 1,390 0 0 0 0 0 1,390
31st March 2014 49,728 0 575 0 0 0 50,302
31st March 2013 0 0 0 100 0 0 100
Total 73,157 5,530 1,205 100 1,712 6,058 87,762
48 | P a g e
13 Investment Properties and Surplus Assets
13a Revaluation of Investment Properties
Investment properties are valued internally. These are revalued as part of the five year rolling
programme but reviewed annually for impairment. If the valuer assesses a material change
as part of the impairment review, the asset is revalued in year to ensure investment properties
are at fair value at the balance sheet date.
Valuation Techniques used to Determine Fair Values for Investment Properties –
Significant Observable Inputs
The fair value for the office, commercial and retail units and some land has been based on
the market approach using current market conditions and recent sales prices and other
relevant information for similar assets in the local authority area. Market conditions are such
that similar properties are actively purchased and sold and the level of observable inputs are
significant, leading to the properties being categorised as Level 2 in the fair value hierarchy.
The inputs to the measurement techniques are categorised in accordance with the following
three levels:
Level 1 input – quoted prices (unadjusted) in active markets for identical assets that the
Authority can access at the measurement date
Level 2 inputs – inputs other than quoted prices included within Level 1 that are observable
for the asset, either directly or indirectly
Level 3 inputs – unobservable inputs for the asset.
Highest and Best Use of Investment Properties
In estimating the fair value of the authority’s investment properties, the highest and best use
of the properties is their current use. Gains or losses arising from changes in the fair value
of the investment property are recognised in the Surplus Gains or Deficit on the Provision of
Services – Financing and Investment Income and Expenditure line.
49 | P a g e
13b Movement of Investment Properties
The following table summarises the movement in the fair value of investment properties
over the year:
31 Mar 17 31 Mar 18
£'000 £'000
Cost or valuation
104,949 At 1 April year start 120,508
9,440 Additions - acquistions 949
1,129 Additions - subsequent expenditure 1,984
6,290 Revaluation increases recognised in the Surplus / Deficit on
the provisions of services4,414
(1,300) Derecognition - Disposals (350)
0 Transfers 2,880
0 Other Adjustments 119
120,508 Balance at 31 March 130,504
13c Accounted for in Comprehensive Income and Expenditure Statement
The following items of income and expense have been accounted for in the Financing and
Investment Income and Expenditure line in the Comprehensive Income and Expenditure
Statement.
31 Mar 17 31 Mar 18
£'000 £'000
(5,666) Rental and Other income from Investment Properties (6,104)
(6,290) Change in Fair Value of Investment Properties (4,533)
1,219 Operating expenses arising from Investment property 1,353
(10,737) Surplus upon Investment properties (9,284)
There are no restrictions on the Authority’s ability to realise the value inherent in its investment
property or on the Authority’s right to the remittance of income and the proceeds of disposal.
50 | P a g e
13d Fair Value Hierarchy
Details of the authority’s investment properties and information about the fair value
hierarchy, as at 31st March 2018, are as follows:
Fair value as at
31 March 17
£’000
Recurring fair value measurements
using:
Quoted prices in active
markets for identical assets
(Level 1) £’000
Other significant observable
inputs (Level 2)
£’000
Significant unobservable
inputs (Level 3)
£’000
Fair value as at
31 March 18
£’000
1,184
Residential Props (Market value) 0 1,166 0 1,166
4,530 Office Units 4,358 0 0 4,358 114,794 Commercial Units 0 124,980 0 124,980
120,508 4,358 126,146 0 130,504
14 Capital Expenditure, Financing & Commitments
The total amount of capital expenditure incurred in the year is shown in the table below,
together with the resources that have been used to finance it.
31 Mar 17 31 Mar 18
£'000 £'000
8,188 Opening Capital Finance Requirement 6,864
Capital Investment
1,007 Property, Plant and Equipment 3,670
10,569 Investment Properties 2,932
15 Intangible Assets 0
2,426 Revenue Expenditure Funded from Capital Under Statute 5,183
14,017 11,785
Sources of Finance
(4,899) Capital receipts (6,739)
(2,213) Government grants and other contributions (5,046)
(1,326) Minimum Revenue Provision (985)
(6,903) Sums set aside 0
(15,341) (12,770)
(1,324) Total in year movement in Capital Financing Requirement (985)
6,864 Closing Capital Finance Requirement 5,879
The net movement in the year is represented by:
(1,324) Increase/(Decrease) in underlying need to borrow (985)
(1,324) Total in year movement in Capital Financing Requirement (985)
51 | P a g e
14a Capital Commitments as at 31st March 2018
The Capital Commitments as at 31st March 2018 by Service are shown in the table below:
Service 31 Mar 18 £’000
Community 16
Economic Development 431
External Bodies 528
Housing 66
HR & ICT 97
Leader 649
Planning & Sustainability 498
Total 2,285
52 | P a g e
15 Financial Instruments – Balances
15a Debtors – Long-term
31 Mar 17 Movement in
Year
31 Mar 18
£'000 £'000 £'000
12,088 Red Kite Community Housing (RKCH)* (3,022) 9,066
1,346 Rent to Mortgage 0 1,346
0 Finance Lease - Needham Place 475 475
32 Other Long Term debtors 41 73
13,466 Total (2,506) 10,960
Note: *The RKCH balance relates to the VAT shelter cash flow mechanism, part of the
housing stock transfer agreement, which is due to be repaid by the end of 2021.
15b Debtors – Short-term
31 Mar 17 Movement
in Year
31 Mar 18
£'000 £'000 £'000
3,065 Other Entities and Individuals 4,113 7,178
(179) Provision for Impairment (53) (232)
2,886 Total Financial Instruments definition 4,060 6,946
Business Rates:
1,337 Gross Arrears of Tax (184) 1,153
(1,247) Provision for Impairment - Tax 318 (929)
Council Tax:
870 Gross Arrears of Costs 0 870
(870) Provision for Impairment - Costs 0 (870)
1,013 Gross Arrears of Tax (281) 732
(873) Provision for Impairment - Tax 277 (596)
Housing Benefits:
5,357 Gross Arrears of Overpayments 328 5,685
(4,653) Provision for Impairment 181 (4,472)
3,969 Central Government Bodies (2,719) 1,250
0 Other Local Authorites 2,404 2,404
7,789 Total 4,384 12,173
53 | P a g e
15c Cash and Cash Equivalents
** The Council held cash balances on behalf of various trusts which is deducted from the
current bank account figure as summarised in the table below.
15d Creditors – Short-term
31 Mar 17 Movement
in Year
31 Mar 18
£'000 £'000 £'000
774 Bank Current Account** (860) (86)
27,304 Short Term Deposits (7,907) 19,397
28,078 Total (8,767) 19,311
31 Mar 17 31 Mar 18
£'000 £'000
(115) Griffiths, Lincolnshire & Thomas Trust (116)
(42) Rutland Trust (43)
0 Higginson Park Trust (101)
(157) Total (260)
31 Mar 17 Movement
in Year
31 Mar 18
£'000 £'000 £'000
(7,217) s106 Developer Contributions (see Note 27) 1,316 (5,901)
(3,272) Receipts in Advance 859 (2,413)
(3,406) Other Entities and Individuals (1,738) (5,144)
(13,895) Total Financial Instruments Definition 437 (13,458)
Government Items
(6,764) Central Government Bodies 1,187 (5,577)
(5,710) Other Local Authorities 740 (4,970)
(371) Council Tax & NDR (1,249) (1,620)
(26,740) Total 1,115 (25,625)
54 | P a g e
16 Provisions
17 Other Payables
31 Mar 17 Movement
in Year
31 Mar 18
£'000 £'000 £'000
(764) Insurance Provision 303 (461)
(2,496) NDR Appeals Provision (WDC's share) (878) (3,374)
0 Asbestos Provision (1,183) (1,183)
(3,260) Total (1,758) (5,018)
31 Mar 17 Movement
in Year
31 Mar 18
£'000 £'000 £'000
(2,388) Embedded Finance Lease (waste contract) 761 (1,627)
(841) Community Infrastructure Levy (parishes) (288) (1,129)
(3,229) Total 473 (2,756)
55 | P a g e
18. Usable Reserves
18a Movement in Reserves
Details of the movements relating to individual usable reserves are shown below:
31 Mar 17 Movement
in Year
31 Mar 18
£'000 Note £'000 £'000
9,738 General Fund 18b 110 9,848
36,888 Earmarked Reserves 18c 3,356 40,244
18,329 Usable Capital Receipts 18d (1,485) 16,844
5,010 Capital Grants Unapplied 18e 2,439 7,449
69,965 Balance at 31 March 4,420 74,384
18b General Fund
18c Earmarked Usable Reserves
31 Mar 17 31 Mar 18
£'000 £'000
9,537 Balance at 1 April 9,738
8,587 Surplus / (Deficit) on Provision of services 10,491
(6,306) (5,496)
(2,081) Transfers (to) Earmarked Reserves (3,356)
0 Transfer to Unusable Reserves (1,529)
201 Fund Surplus for the year 110
9,738 Balance at 31 March 9,848
Adjs between accounting & funding basis under regulation
Balance Additions Used Balance
Earmarked Reserve Description at 1 April in year in year at 1 April
2017 2017/18 2017/18 2018
£'000 £'000 £'000 £'000
Revenue Development Reserve (RDR) 23,589 2,155 (1,075) 24,669
Repairs & Renewals Fund 4,225 450 (613) 4,062
Transformation 660 0 0 660
Insurance Funds 2,086 0 (263) 1,823
Planning Delivery, LAGBI & Local Dev 838 0 (110) 728
DWP Appropriation 1,301 0 0 1,301
Special Expenses 934 99 0 1,033
Business Rates Adjustment Reserve 1,666 1,487 0 3,153
Business Rates Equalisation Fund 763 0 0 763
Other 826 1,226 0 2,052
TOTAL EARMARKED RESERVES 36,888 5,417 (2,061) 40,244
56 | P a g e
18d Usable Capital Receipts Reserve
The Usable Capital Receipts Reserve holds capital receipts from the sale of assets, which
have been received and have not yet been used to finance capital expenditure. The
balance on the Reserve is held to fund future years’ capital expenditure.
31 Mar 17 31 Mar 18
£'000 £'000
15,310 Balance at 1 April 18,329
7,699 Proceeds from sale of non-current assets 5,255
(4,899)Use of Capital Receipts Reserve to finance new capital
expenditure(6,739)
219 Capital Receipt from Deferred Capital Receipts Reserve 0
18,329 Balance at 31 March 16,844
18e Capital Contributions and Grants Unapplied
Where Capital Grants, that have no condition attached to them, have been received but no
expenditure has yet been made against them, the amount is held in the Capital Grants
Unapplied Reserve.
31 Mar 17 31 Mar 18
£'000 £'000
3,592 Balance at 1 April 5,010
1,418 Capital Grants from Community Infrastructure Levy 2,152
0 Disabled Facility Grants 287
5,010 Balance at 31 March 7,449
57 | P a g e
19 Unusable Reserves
19a Movement in Reserves
Details of the movements relating to individual unusable reserves are shown below:
31 Mar 17 31 Mar 18
£'000 Note £'000
178,567 Capital Adjustment Account 19b 189,681
13,086 Revaluation Reserve 19c 23,932
1,347 Deferred Capital Receipts Reserve 19d 1,821
(66,918) Pensions Reserve 19e (62,525)
(1,528) Collection Fund Adjustment Account 19f (739)
0 Financial Instruments Adjustment Account (439)
(248) Accumulated Absences Reserve (248)
124,306 Total Unuseable Reserves 151,483
19b Capital Adjustment Account
The Capital Adjustment Account absorbs the timing differences arising from different arrangements
for accounting for the consumption of long-term assets and for financing the acquisition, construction
or enhancements of those assets under statutory provisions. The Account is charged with the cost of
consumption of property, plant and equipment and enhanced by the amounts set aside by the
Authority as finance for the costs of acquisition, construction and enhancement of these assets.
31 Mar 17 31 Mar 18
£'000 £'000
164,552 Balance at 1 April 178,569
(1,784) Depreciation on Property, Plant & Equipment (2,242)
(40) Amortisation of Intangible Assets (87)
(92) Asset Impairment (1,544)
673 Upward Revaluation to CIES 2,458
(2,425) Revenue Expenditure Funded from Capital under Statute (5,182)
(3,948) (350)
0 Decomission of Assets (1,387)
Revaluation Reserve on Decomission & Transfer of assets 1,965
Depreciation written out of the revaluation reserve 178
(7,617)Net written out amount of the cost of non-current
assets consumed in the year(6,191)
Resources set aside to finance capital expenditure
6,903 Sums set aside 0
4,899 Capital Receipts 6,739
2,213 Grants & Contributions Applied 5,046
1,326 Minimum Statutory Provision 985
15,341 Total Financing Items 12,770
6,290 Movements in Market Value of Investment Properties 4,533
178,566 Balance at 31 March 189,681
Non-current assets written off on disposal
58 | P a g e
19c Revaluation Reserve
The Revaluation Reserve contains the gains made by the Authority arising from increases in the value
of its Property, Plant and Equipment.
The balance is reduced when assets with accumulate gains are:
Revalued downwards or impaired and the gains are lost
Used in the provision of services and the gains are consumed through depreciation
Disposed of and the gains are realised
The Reserve contains only revaluation gains accumulated since 1 April 2007, the date that the
Reserve was created. Accumulated gains arising before that date are consolidated into the balance
on the Capital Adjustment Account.
31 Mar 17 31 Mar 18
£'000 £'000
14,558 Balance at 1 April 13,086
175 Upward revaluation of assets 9,965
(716) Revaluation decrease 0
Recognition of Assets not previously on Balance Sheet 3,284
(348) Impairment charged to the revaluation reserve (260)
13,669
Surplus/Deficit on revaluation of non-current
assets not posted to the Surplus/Deficit on the
Provision of Services
26,075
(184)Difference between fair value depreciation and
historical cost depreciation(178)
(399) Decomission, Transfer and Disposal of assets (1,965)
13,086 Balance at 31 March 23,932
19d Deferred Capital Receipts
The Deferred Capital Receipts Reserve holds the gains recognised on the disposal of non-current
assets for which cash settlement has yet to take place. Under statutory arrangements, the authority
does not treat these gains as usable for financial new capital expenditure until they are backed by
cash receipts. When the deferred cash settlement eventually takes place, amounts are transferred
to the Capital Receipts Reserve.
31 Mar 17 31 Mar 18
£'000 £'000
3,023 1,347
(1,457) 0
(219) 0
0 475
1,347 Balance at 31 March 1,821
Balance at 1 April
Deferred sale proceeds credited as part of the gain/loss on
disposal to the CIES
Transfer to the Capital Receipts Reserve upon receipt of cash for
items disposed in prior years
Change in Long Term Finance Leases
59 | P a g e
19e Pensions Reserve
The Pensions Reserve absorbs the timing differences arising from the different arrangements
for accounting for post-employment benefits in accordance with statutory provisions. The
Authority accounts for post-employment benefits in the Comprehensive Income and
Expenditure Statement as the benefits are earned by employees accruing years of service,
updating the liabilities to reflect inflation, changing assumptions and investment returns on
any resources set aside to meet costs. However, statutory arrangements require benefits
earned to be financed as the Authority makes employer’s contributions to pend funds or
eventually pays any pensions for which it is directly responsible. The debit balance on the
Pensions Reserve therefore shows a substantial shortfall upon the resources the Authority
has set aside in relation to the accrued benefit entitlement of past and current employees.
The statutory arrangements will ensure that funding will have been set aside by the time the
benefits come to be paid.
31 Mar 17 31 Mar 18
£'000 £'000
(54,317) (66,918)
(26,879) 3,692
1,256 1,610
17,459 4,426
(4,437) (5,335)
(66,918) Balance at 31 March (62,525)
Reversal of IAS19 entries charges to the CIES - transferred to the
Pensions Reserve
Balance at 1 April
Actuarial Gain or (Loss) on Pension Assets and Liabilities
Employer contributions plus benefits paid direct to beneficiaries
Return on assets excluding amounts included within net interest
19f Collection Fund Adjustment Account
The Collection Fund Adjustment Account manages the differences arising from the recognition of
council tax income in the Comprehensive Income and Expenditure Statement as it falls due from
council tax payers, compared with the statutory arrangements for paying amounts to or from the
General Fund to the Collection Fund.
31 Mar 17 31 Mar 18
£'000 £'000
(2,332) (1,528)
0 1,528
794 (1,003)
10 264
(1,528) (739)
In-year Council Tax surplus movement
Balance at 31 March
Balance at 1 April
Reversal of balance brought forward
In-year Non-Domestic Rates surplus / (deficit) movement
60 | P a g e
20 Cash Flow
20a Cash Flows from Operating Activities
2016/17 2017/18Financial
Activity in
Year
Financial
Activity in
Year
£'000 £'000
(8,587) Deficit / (Surplus) on the Provision of Services (10,491)
Adjust net surplus or deficit on the provision of services
for non cash movements:(2,010) Depreciation & Amortisation (2,242)
(266) Impairment (473)
(3,181) Pension Liability (3,725)
6,290 Movement in Investment Property Values 4,533
(714) (Increase) / Decrease in Impairment Provision for bad debts 723
1,730Increase / (Decrease) in Creditors (excluding Collection Fund
Agencies)(304)
(7,791)(Increase) / Decrease in Debtors (excluding Impairment
Provision & Collection Fund Agencies)4,126
(45) (Increase) / Decrease in Inventories 0
551 Increase / (Decrease) in Provisions (1,758)
0 Increase / (Decrease) in Non-Current Liabilities 0
(94) (Increase) / Decrease in Long Term Debtors (2,506)
171 Other Non-Cash Movements
(5,359) Sub-Total Adjustments for Non-cash Movements (1,626)
Adjustment for items included in the net (deficit) / surplus
on the provision of services that are investing and
finance activities:
1,894Adjust for profit upon sale of assets (offset to proceeds shown
in investment section below)4,819
(12,052) Total Cash Flows from Operating Activities (7,298)
61 | P a g e
20b Cash Flows from Investing Activities
20c Cash Flows from Financing Activities
2016/17 2017/18Financial
Activity in
Year
Financial
Activity in
Year
£'000 £'000
11,591Purchase/(Sale) of Property, Plant & equipment, Heritage &
Intangible Assets6,604
(6,241)Proceeds from the Sale of Property, Plant & equipment,
Heritage & Intangible Assets(5,256)
2,000 Purchase/(Sale) of Long Term Investment 7,000
(3,062) Purchase / (Sale) of Temporary Investments 6,254
4,288 Total Cash Flows from Investing Activities 14,602
2016/17 2017/18Financial
Activity in
Financial
Activity in
£'000 £'000
0 (Increase) / Decrease in Debtors (Collection Fund Agencies) (465)
(1,654) (Increase) / Decrease in Creditors (Collection Fund Agencies) 1,927
(1,654) Total Cash Flows from Financing Activities 1,462
62 | P a g e
21 Members’ Allowances
The total of Members’ Allowances paid in the year 2017/18 was £581,634 (£541,896 in
2016/17).
22 Officers’ remuneration (including termination benefits)
22a Senior Employee Remuneration
The remuneration of senior employees, defined as those who are Heads of Service, Directors, the Chief Executive and those holding statutory posts, or those whose remuneration is £150,000 or more per year, was as set out below.
Salary
(Including fees & allowance)
Benefit in Kind
Total Remuneration
Excluding Pension
Contribution
Pension Contribution
Total Remuneration
Restated 2016/17
Post £ £ £ £ £
Chief Executive (Karen Satterford) 141,891 688 142,579 19,676 162,255
Corporate Director 102,870 688 103,558 14,291 117,849
Major Projects & Estates Executive 87,269 688 87,957 11,947 99,904
Head of HR, ICT and Customer Services
85,887 688 86,575 11,947 98,522
Head of Community Services 85,887 0 85,887 11,852 97,739
Head of Financial Services 87,539 0 87,539 11,852 99,391
Head of Planning & Sustainability 82,886 688 83,574 11,533 95,107
Head of Democratic, Legal & Policy 64,490 0 64,490 8,900 73,390
Head of Environmental Services 85,887 688 86,575 11,947 98,522
District Solicitor (Monitoring Officer) 67,228 688 67,916 9,372 77,288
891,834 4,816 896,650 123,319 1,019,969
2017/18
Post £ £ £ £ £
Chief Executive (Karen Satterford) 139,471 682 140,153 36,438 176,592
Corporate Director 1 (Left 07/05/17) 11,229 0 11,229 1,669 12,898
Corporate Director 2 (Started 01/01/18)
24,971 170 25,142 3,947 29,089
Major Projects & Estates Executive 86,746 682 87,428 14,652 102,080
Head of HR, ICT and Customer Services
86,746 682 87,428 13,726 101,154
Head of Community Services 86,746 682 87,428 13,726 101,154
Head of Financial Services 1 (Left 21/05/17)
14,788 0 14,788 1,904 16,691
Head of Financial Services 2 (Started 04/12/17)
28,216 222 28,438 4,465 32,902
Head of Planning & Sustainability 85,320 682 86,002 13,502 99,504
Head of Democratic, Legal & Policy 86,746 0 86,746 13,619 100,365
Head of Environmental Services 86,746 682 87,428 13,726 101,154
District Solicitor (Monitoring Officer) 69,482 0 69,482 11,016 80,498 807,207 4,484 811,691 142,390 954,081
63 | P a g e
22b Officers Remuneration
A requirement of the Accounts and Audit Regulations 2015 is for the disclosure of the number of employees in the accounting period whose remuneration fell in each bracket of a scale in multiples of £5,000, starting at £50,000. Senior Officers as shown in Note 22a are excluded from this note. Amounts exclude National Insurance payments but include all payments, pension costs, taxable allowances and the monetary value of other employee benefits. The relevant details are as follows:
2016/17 Number of Employees
Remuneration Band 2017/18 Number of Employees
13 £50,000 - £54,999 9
6 £55,000 - £59,999 9
11 £60,000 - £64,999 10
8 £65,000 - £69,999 6
3 £70,000 - £74,999 10
41 44
22c Termination Benefits
The number of exit packages with total cost per band and total cost of the compulsory and other redundancies are set out in the table below:
Exit Packages Cost Band
(including special payments)
Number of compulsory
Redundancies
Number of other departures
agreed
Total number of exit packages by
Cost Band
Total Cost of Exit Packages in
each band
2016/17 No.
2017/18 No.
2016/17 No.
2017/18 No.
2016/17 £’000
2017/18 £’000
2016/17 £’000
2017/18 £’000
£0-£20,000
0 0 1 1 1 1 12 5
£20,000-£40,000
0 0 0 1 0 1 0 30
£40,000-£60,000
0 0 0 0 0 0 0 0
£60,000 upwards
0 0 0 0 0 0 0 0
TOTAL Cost of Redundancies made in year
12
35
Reversal of amounts provided for in previous financial years regarding redundancies paid in current financial year
-12 0
TOTAL Amounts provided for in Comprehensive Income & Expenditure Account for Redundancies
0 35
64 | P a g e
23 External Audit Costs
The Authority has incurred the following costs in relation to the audit of the Statement of
Accounts, certification of grant claims and statutory inspections:
2016/17 2017/18
£'000 £'000
62 Fees payable with regard to external audit services 62
29 Fees payable for the certification of grant claims and returns 17
91 Total 79
24 Grant Income
The Authority credited the following grants, contributions and donations to the Comprehensive Income and Expenditure Statement:
2016/17 2017/18
£'000 £'000
Credited to Taxation and Non Specific Grant Income
(742) Government Grants (Not Attributable to Specific Services) (40)
(3,140) National Non-Domestic Rates (3,125)
(1,490) Revenue Support Grant (635)
(3,665) New Homes Bonus (2,321)
(84) Transition Grant (77)
(620) Developer Capital Contribution (6,026)
(9,741) Total Credited to Taxation and Non Specific Grant Income (12,224)
Credited to Services
(45,495) Housing Benefits (43,794)
(565) Housing Benefit Admin Grant (528)
(399) Council Tax Support Admin and NDR cost of collection (396)
(850) Improvement Grants (Disabled Facilities Grant) (1,419)
(218) EU Referendum 0
(172) Elections (220)
(7) Miscellaneous Grants (158)
0 Flexible Homeless Support Grant (91)
(47,706) Total Credited to Services (46,606)
(57,447) Total Grant Income (58,830)
65 | P a g e
25 Contributions received in advance or owed Third Parties
The Authority has received a number of grants and contributions that have yet to be
recognised as income as they have conditions attached to them that will require the monies
to be returned to the giver or where the Council is holding funds for third parties.
The balances at the year-end are as follows;
26 Related Parties Transactions
The Council is required to disclose material transactions with related parties - bodies or
individuals that have the potential to control or influence the Council or to be controlled or
influenced by the Council. Disclosure of these transactions in this Statement of Accounts
allows the readers to assess the extent to which the Council might have been constrained in
its ability to operate independently or might have secured the ability to limit another party's
ability to bargain freely with the Council.
A related party transaction is the transfer of assets or liabilities or the performance of services
by, to, or for a related party irrespective of whether a charge is made.
Related parties to this authority would include:
central government;
local authorities and other bodies precepting or levying demands on the council tax;
its councillors;
its chief officers; and
its pension fund
Members of the immediate family, or the same household of an individual identified as a
related party, are also presumed to be related parties.
2016/17 2017/18
£'000 £'000
(1,520) Open Space Developer Contribution Unapplied (1,431)
(506) Community Developer Contribution Unapplied (482)
(303) Environmental Developer Contribution Unapplied (232)
(44) Indoor Leisure Developer Contribution Unapplied (52)
(32) CCTV Developer Contribution Unapplied (32)
(3,096) On behalf of Affordable Housing Schemes (2,510)
(5,501) Total yet to be applied at Balance Sheet date (4,739)
(1,028)On behalf of Buckinghamshire County Council Transport
Schemes (813)
(6,529) Total s106 Developer Contributions Unapplied (5,552)
(688) On behalf of other schemes and parties (349)
(7,217) Total held on behalf of third parties (5,901)
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All significant transactions with the Government, precepting authorities and the
Buckinghamshire County Council pension fund have been disclosed elsewhere in this
Statement of Accounts. In addition the council made other payments to Buckinghamshire
County Council totalling £2,852k in 2017/18 (£3,724k in 2016/17) and undertook work to the
value of £1,317k in 2017/18 (£1,009k in 2016/17) on behalf of Buckinghamshire County
Council.
The Council made payments to Chiltern District Council of £4,856k in 2017/18 (£5,378k in
2016/17), comprising mostly the joint waste contract of £4,836k. The Council received
income from Chiltern District Council to the value of £1,526k in 2017/18 (£1,820k in 2016/17),
£1,488k related to the Joint Waste Contract. The Council made payments to Aylesbury District
Council of £256k in 2017/18 (£127k in 2016/17) and undertook work to the value of £111k in
2017/18 (£77k in 2016/17).
No material transactions took place in respect of councillors and chief officers except for the
following:
The Council awards grants to various voluntary and community organisations throughout the
district. The award of such grants are all independently approved by the relevant Cabinet
Member. District Council members declared interests in voluntary organisations receiving
funding from the Council of £239k in 2017/18 (£223k in 2016/17).
A Senior Officer is currently a Director and minority shareholder in Crendon Properties Limited
and Wycombe Flats Limited. Crendon Properties hold three 125 year ground leases with
Wycombe District Council. The Council received payments of £22k from Crendon Properties
Limited and made payments of £10k to Wycombe Flats Limited and £2k to Crendon
Properties Limited.
Another senior officer is currently a Director of Planning Officers Society Enterprises (POSe),
is a member of the Royal Town Planning Institute and the Institute of Environmental Sciences
and is panel member for the Bucks, Oxford, Berks and Milton Keynes Design group, they are
also a BEE (Built Environment Expert) with what was formerly the Commission for
Architecture and the Built Environment. WDC paid POSe £4,454.58 in 2017/18 for receipt of
some training.
These are all voluntary positions, with no financial benefits to the individual or to WDC.
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27 Leases
27a Authority as Lessee
i) Operating Leases
The Council has a number of operating leases as follows:
The Council paid a one off fee of £158k in 2016/17 to buy out of the Marlow Information Centre lease within Land and Buildings. The future minimum payments due under non-cancellable leases in future years are:
2016/17
Total
Vehicles,
Plant &
Equipment Total
£'000 £'000 £'000
26 Not later than one year 23 23
34 Later than one year and not later than five years 9 9
60 Total Liability 32 32
Future Years
ii) Finance Leases
As at 31st March 2018, the Council had £2,390k of finance leases relating to the joint waste contract with Chiltern District Council. These are leases embedded within the service contract and have no net effect on the Council’s debt levels.
31 March 18
£'000
Minimum lease payments are made up as
follows:-under 1 year 849
Later than one year and not later than five years 1,276
later than five years 534
Future Finance costs (269)
Total Finance Lease Liability 2,390
2016/17 2017/18
£'000 £'000
187 Land & Buildings - 2 area offices 0
32 Vehicles, Plant and Office Equipment 24
219 Total Annual Operating Lease Costs 24
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27b Authority as Lessor
i) Operating Leases
Operating lease rentals received during the year totalled £6,362k (£5,951k in 2016/17).
These relate to the Council’s property portfolio.
ii) Finance Leases
The Authority has leased out a property to Beacon Investments LLP. The gross investment is made up of the following amounts;
31 March 18
£'000
Finance lease debtor (NPV of min lease payments)
Current 21
Non current 483
Unearned finance income 416
Total Gross Investment in the Lease 920
The gross investment in the lease and minimum lease payments will be received over the following periods;
Gross
Investment
in Lease
Minimum
Lease
Payments
31 March 18 31 March 18
£'000 £'000
Not later than one year 40 21
later than one year and not later than five years 144 74
later than five years 736 409
Total 920 504
28 Defined Benefit Pension Scheme
28a Participation in Pension Scheme
As part of the terms and conditions of employment of its officers, the Authority makes
contributions towards the cost of post-employment benefits. Although these benefits will not
actually be payable until employees retire, the Authority has a commitment to make the
payments that needs to be disclosed at the time that employees earn their future entitlement.
The authority participates in the Local Government Pension Scheme, administered locally by
Buckinghamshire County Council. The Authority and employees pay contributions into a fund,
calculated at a level intended to balance the pension’s liabilities with investment assets. The
benefits payable in respect of service from 1st April 2014 are based on career average
revalued earnings and the number of years of eligible service. Pensions are increased each
year in line with the Consumer Price Index.
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28b Transactions relating to Post-Employment Benefits
The following transactions have been made in the Comprehensive Income and Expenditure
Account and the General Fund Balance via the Movement in Reserves Statement during
the year:
31 Mar 17 31 Mar 18
£'000 £'000
Comprehensive Income and Expenditure Statement
Cost of Services:
2,515 Current Service Cost 3,597
(114) Settlements and Curtailments (185)
Financing and Investment Income and Expenditure
104 Administration Expense 143
1,932 Net Interest on the defined liability (asset) 1,780
4,437 5,335
Remeasurement of the net defined benefit liability comprising:
(17,459) Return on fund assets (4,426)
36,761
Actuarial gains / (losses) arising on changes in financial
assumptions
(3,692)
(3,249)
Actuarial gains / (losses) arising on changes in demographic
assumptions
0
(7,906) Experience gains / (losses) on defined benefit obligation 0
1,273 Other (if applicable) 0
9,420 (8,118)
Movement in Reserves Statement
(4,437)
Reversal of net charges made to the Surplus or Deficit for the
Provision of Services for post employment benefits in
accordance with the Code
(5,335)
1,256 Employer's contributions payable to the scheme 1,610
(3,181) (3,725)
Total Other Post Employment Benefit Charged to the
Comprehensive Income & Expenditure Account
Actual amount charged against the General Fund Balance for
pensions in the year:
Other Post Employment Benefit Charged to the
Comprehensive Income & Expenditure Account:
Total Post Employment Benefit Charged to the Surplus or
Deficit on the Provision of Services
The Council recognises the cost of retirement benefits in the reported cost of services when
they are earned by employees, rather than when the benefits are eventually paid as
pensions. However, the charge that is required to be made against council tax is based on
the cash payable in the year, so the real cost of post-employment / retirement benefits is
reversed out of the General Fund via the Movement in Reserves Statement.
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28c Assets and Liabilities, Gains and Losses
The liabilities show the underlying commitments that the Authority has in the long run to pay post-employment (retirement) benefits. The net liability of £62.5m has a substantial impact on the net worth of the Authority as recorded in the Balance Sheet. However, statutory arrangements for funding the deficit mean that the financial position of the Council remains healthy.
The deficit on the local government scheme will be made good by increased contributions
over the remaining working life of employees (i.e. before payment fall due), as assessed by
the scheme actuaries.
The employer contributions expected to be made to the Local Government Pension Scheme
by the Council in the year to 31 March 2019 is £1.6m.
The cumulative amount of actuarial gains and losses recognised in the Comprehensive
Income and Expenditure Statement for 2017/18 is a gain of £8.1m.
Assets and Liabilities in relation to Post-employment Benefits
Reconciliation of present value of the scheme liabilities (defined benefit obligation):
31 Mar 17 31 Mar 18
£'000 £'000
(214,236) (213,689)
147,318 151,164
(66,918) Surplus / (deficit) in the scheme (62,525)
Present value of liabilities in the Local Government Pension
SchemeFair value of assets in the Local Government Pension Scheme
31 Mar 17 31 Mar 18
£'000 £'000
(185,303) Opening balance at 1 April (214,236)
(2,515) Current service costs (3,597)
(6,570) Interest cost (5,697)
(36,761) Change in financial assumptions 3,692
3,249 Change in demographic assumptions 0
7,906 Experience (loss)/gain on defined benefit obligation 0
(707) Contributions by scheme participants (715)
6,207 Benefits paid 6,475
258 Liabilties (assumed) / extinquished on settlements 389
(214,236) Closing Balance at 31 March (213,689)
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Reconciliation of fair value of the scheme assets:
The expected return on scheme assets is determined by considering the expected returns
available on the assets underlying the current investment policy. Expected yields on
fixed interest investments are based on gross redemption yields as at the Balance
Sheet date. Expected returns on equity investments reflect long-term real rates of return
experiences in the respective markets. The actual return on scheme assets in the year was
a gain of £4.4m (2016/17 gain of £17.5m).
The Scheme assets consist of the following categories, by proportion of the total assets
held:
31 Mar 17 31 Mar 18
£'000 £'000
130,986 Opening balance at 1 April 147,318
1,256 Employer Contributions 1,610
4,638 Interest on Assets 3,917
707 Contributions by scheme participants 715
17,459 4,426
(1,273) Other Actuarial gains/(losses) 0
(6,207) Benefits paid (6,475)
(144) Settlement Prices received / (paid) (204)
(104) Administration Expenses (143)
147,318 Closing Balance at 31 March 151,164
The return on Plan Assets, excluding the amount included in the
net interest expense
31 Mar 17 31 Mar 18
% %
57 Equity Instruments 56
24 Bonds 22
By sector:
12 Corporate 9
12 Government 13
19 Property & Alternative 22
By type:
8 Property 7
2 Cash 4
1 Alternative Assets 1
4 Hedge Fund 5
4 Absolute Return Portfolio 5
100 100
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28d Basis for Estimating Assets and Liabilities
Liabilities have been assessed on an actuarial basis using the projected unit method, an
estimate of the pensions that will be payable in future years dependent on assumptions about
mortality rates, salary levels, etc. The Local Government Pension Scheme and Discretionary
Benefits liabilities have been assessed by Barnett Waddingham, an independent firm of
actuaries, estimates for the County Council Fund being based on the latest full valuation of
the scheme as at 31 March 2017 but rolled forward to 31 March 2018.
28e Principal Assumptions
The principal assumptions used by the actuary were:
2016/17 2017/18
+1% or 1 year-1% or 1
year
Liability Assumptions (rate of
increase)
£million £million
3.5% Rate of inflation 3.4% -3.4 3.4
2.6% Rate of Pension Increase Rate 2.4%
4.1% Rate of increase in salaries * 3.9% -0.3 0.3
2.7% Rate for discounting scheme liabilities 2.6% -3.6 -3.7
Liabilty Assumptions (mortality) -8.4 8.0
Longevity at 65 for current pensioners
23.9 Men 24.0
26.0 Women 26.1
Longevity at 65 for future pensioners
26.1 Men 26.2
28.3 Women 28.4
Sensitivity to Change
Movement in Overall
Liability
* Salaries are assumed to increase at 1.5% p.a. above CPI in addition to a promotional scale. However, there has been allowed a short term overlay from 31st March 2016 to 31st March 2020 for salaries to rise in line with CPI.
73 | P a g e
29 Nature and Extent of Risk
29a Disclosure of Nature and Extent of Risk arising from Financial Instruments
Financial Instruments - Balances
Investment Interest/gains from treasury activity
Income, Expense, Gains and Losses from Financial
Instruments
31-Mar-18
£'000
(220)
31-Mar-17
(559)
£'000
(559)
£'000
Fair Value
Financial liabilities and financial assets represented by, creditors, investments and debtors
are carried on the Balance Sheet at amortised cost. The Council considers that the market
value of these instruments is not materially different from their carrying value (amortised cost)
given their duration and nature of the transactions.
Where an investment that has a maturity of under one year, or has a variable rate of interest,
is a creditor or a trade debtor then the fair value is taken to be the repayment outstanding or
the invoiced amount.
The financial instrument that are subject to fair value adjustment are:-
Investment in UK Government fixed interest securities (gilts) where the capital value can
fluctuate based on interest rate yield and money market activity;
The available for sale investment is the Local Authorities’ property fund purchased on 30
November 2017 is valued at the bid price on 31 March 2018.
Investments
More than one year
Less than one year
Debtors
Cash and Cash Equivalent
Creditors
Available for Sale Investments 0
41,323
3,065
28,078
(13,895)
13,000 6,000
10,961
0 7,061
40,516
13,466
0 (841) (13,458)
6,946
19,311
0.00
£'000
Long-Term
31-Mar-18 31-Mar-17 31-Mar-18 31-Mar-17
Current
£'000 £'000 £'000
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Key Risks
The Council’s activities expose it to a variety of financial risks.
The key risks are:
Credit risk The possibility that other parties might fail to pay amounts due to the Council;
Liquidity risk The possibility that the Council might not have funds available to meet its commitments to make payments;
Re-financing risk The possibility that the Council might be requiring to renew a financial instrument at disadvantageous interest rates or terms;
Market risk The possibility that financial loss might arise for the Council as a result of changes in such measures as interest rates movements.
29b Overall procedures for managing risk
The Council has adopted the CIPFA Code of Practice on Treasury Management and complies
with the Prudential Code for Capital Finance in Local Authorities. As part of the adoption of
the Treasury Management Code, the Council approves a Treasury Management Strategy
before the commencement of each financial year. The strategy sets out the parameters for
the management of risks associated with Financial Instruments. Full details of the Council's
Treasury Management Strategy can be found on the Council website.
The Treasury Management Strategy includes an Annual Investment Strategy in compliance
with the Department for Communities and Local Government (DCLG) Investment Guidance
for local authorities. In compliance with the guidance, the Council invests its funds prudently
and has regard to the security and liquidity of its investments before seeking the highest rate
of return.
29c Credit risk
Credit risk arises from deposits with banks and financial institutions, as well as credit
exposures to the Council’s customers.
This risk is minimised through the Annual Investment Strategy, which requires that deposits
are only made with banks and financial institutions when they meet the minimum
requirements of the investment criteria set out in the Treasury Management Strategy. This is
based on Credit ratings from the Fitch, Moody's, and Standard and Poor credit rating
agencies. The Strategy also imposes a maximum amount and time to be invested with a
financial institution located within each credit rating category. Information relating to the
counterparties is constantly monitored and action taken should any institution fail to meet the
minimum criteria.
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The following analysis summarises the investment's credit quality and maturity analysis at
31 March 2018:
The Council does not generally allow credit for customers. Trade debtors of £6,946k are
accounted for inclusive of Provision of doubtful debt where there is a risk of non-payment.
29d Liquidity risk
The Council has a comprehensive cash flow management system that seeks to ensure that
cash is available as needed. If unexpected movements happen the Council has ready access
to borrowings from the money markets and the Public Works Loans Board (PWLB). As a result
there is no significant risk that the Council will be unable to raise finance to meet its
commitments under financial instruments.
The Council ensures that it has ready access to borrowings from the money markets to cover
any day to day cash flow need. It currently has no long term borrowing. The Council is also
required to provide a balanced budget through the Local Government Finance Act 1992, which
ensures sufficient monies are raised to cover annual expenditure. There is therefore no
significant risk that it will be unable to raise finance to meet its commitments under financial
instruments.
29e Market Risk
The Council's cash investments are exposed to interest rate movements. For instance, a rise in
variable and fixed interest rates would have the effect of increasing the income credited to the
Comprehensive Income and Expenditure Statement.
The Council has a number of strategies for managing interest rate risk. The annual Treasury
Management Strategy draws together the Council’s prudential and treasury indicators and its
expected treasury operations, including an expectation of interest rate movements. From this
Strategy a treasury indicator is set which provides maximum limits for fixed and variable interest
rate exposure. The central treasury team will monitor market and forecast interest rates within
the year to adjust exposures appropriately. For instance during periods of falling interest rates,
and where economic circumstances make it favourable, fixed rate investments may be taken
Instant
Access
Accts
0-3 Mths 3-6 Mths6-12
Mths
Over 12
MthsTotal
£'000 £'000 £'000 £'000 £'000 £'000
AAA/AA+ related counterparties 12,500 0 0 0 0 12,500
AA/AA- rated counterparties 0 1,000 9,980 0 13,000 23,980
A+/A rated counterparties 0 10,000 7,000 12,000 0 29,000
A- rated counterparties 0 0 1,000 4,000 0 5,000
BBB+ & unrated counterparties 2,055 0 0 0 0 2,055
Unrated 0 0 0 0 0 0
14,555 11,000 17,980 16,000 13,000 72,535
Historical experience of default 0.017% 0.170% 0.017% 0.017% 0.039%
TOTAL
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for longer periods to secure better long term returns. A positive movement of 1% in rates
received on average investment balances of £80m would generate additional investment
income of £800k.
30 Special Expenses
Such expenses are incurred within the unparished area of High Wycombe and are levied only
on the taxpayers of that area. The Gross Income and Expenditure of these have been included
within the Comprehensive Income & Expenditure Account.
31-Mar-17 31-Mar-18
£'000 £'000
103 Recreation Grounds 155
102 Cemetery 86
88 Other Services 79
293 TOTAL EXPENDITURE 320
Financed by:
(12) Capital Resources (12)
(414) Collection Fund and Council Tax Support Funding (408)
0 Interest (4)
(426) TOTAL INCOME (424)
(801) Balance at Year Start (934)
(133) (Surplus)/Deficit for the Year (104)
(934) Balance at Year End (1,038)
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31 Higginson Park Trust
The Charity provides a range of indoor and outdoor sports and recreational opportunities to
the Marlow community with access for all to make use of the available facilities. The Charity is
currently regulated by a Scheme of the Charity Commissioners of 19 January 1982 with
Wycombe District Council being the sole Trustee. The Trustee is entitled to use the charity’s
income for the cost of repairs, insurance, and other expenditure in respect of the property
including incidental administration and management expenses.
32 Contingent Liabilities
VAT Shelter Arrangement As part of the transfer agreement the Council provided a VAT guarantee to Red Kite Community Housing (RKCH) to pay up to a maximum sum of £22m should RKCH be unable to fully recover VAT on the qualifying works included within valuation due to an event outside their control. It is the Council's current opinion that the VAT shelter will not fail. Warranties The Council has agreed to a number of warranties under the Transfer Agreement, these are common place in such negotiations. The key warranties that continue to apply for the Council in respect of contingent liabilities are (a) asbestos indemnity and (b) environmental pollution. Asbestos Indemnity For cases that relate to pre-transfer of the housing stock to RKCH in December 2011, the Council indemnified RKCH for all costs, claims and lawsuits which arise from any person being exposed to asbestos unless there is negligence on the part of RKCH. This warranty runs for the first thirty years after the sale date. The indemnity also covers the cost of removal, treatment or encapsulation of asbestos within properties to be paid by the Council provided that RKCH have firstly spent the £1.1m (inclusive of fees) within the original valuation. The Council understands that this sum is likely to be exceeded but has not yet had access to information to yet establish the extent of any claim.
31-Mar-17 31-Mar-18
£'000 £'000
Statement of Financial Activity
(291) Income (377)
453 Expenditure 430
162 Total Net Deficit 53
Balance Sheet
5,503 Fixed Assets 5,356
Net Current Assets 94
5,503 Total Assets Less Current Liabilities 5,450
Charity Funds
5,503 Restricted Income Funds 5,356
0 Unrestricted Income Funds 94
5,503 Total Charity Funds 5,450
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Environmental Pollution Other than that which is disclosed as part of the transfer agreement and amongst other things, the Council has warranted that: it has complied in full with all environmental legislation; that it has obtained and complied with all environmental approvals necessary for the ownership and use of the property; that there is no environmental claim which is current, pending or threatened; that no dangerous substance is present at, in or under any property; that no part of the property has been or is in such a condition that it could be designated as contaminated. The Council is not aware of any claims under this warranty. The Council has separately taken out Environmental Insurance covering the first 15 years of this period.
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SUPPLEMENTARY FINANCIAL STATEMENTS
COLLECTION FUND
2016/17
Council
Tax
Business
Rates TOTAL
£'000 Note £'000 £'000 £'000
INCOME
(106,066) Council Tax Payers CF2 (111,146) 0 (111,146)
(72,071) Business Rate Payers CF3 0 (70,604) (70,604)
(178,137) Total Income (111,146) (70,604) (181,750)
EXPENDITURE
Precepts and Demands
36,974 Central Government 0 34,688 34,688
83,660 Buckinghamshire County Council 81,781 6,244 88,025
11,082 Thames Valley Police & Crime Commissioner 11,433 0 11,433
4,701 Bucks & Milton Keynes Fire Authority 4,087 694 4,781
41,099 Wycombe District Council 11,851 27,750 39,601
Charges to Collection Fund
447 Write offs of uncollectable amounts 611 565 1,176
397 Increase / (decrease) in bad debt provision 791 8 799
(774) Increase / (decrease) in provision for appeals 0 2,195 2,195
241 Cost of Collection 0 234 234
177,827 Total Expenditure 110,554 72,378 182,932
(310) (Increase) / Decrease in Collection Fund Balance (592) 1,774 1,182
3,986 Fund Balance - (Surplus) / Deficit at 1 April (4,047) 4,945 898
(2,768) 2,200 (3,816) (1,616)
908 Fund Balance - (Surplus) / Deficit at 31 March (2,439) 2,903 464
Contribution to/(from) previous year estimated
surplus/(deficit)
2017/18
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NOTES TO THE COLLECTION FUND
CF1 The Fund
These accounts represent the transactions of the Collection Fund. The Fund is required under
statute to record the amount collectable from residents in their role as Council Taxpayers
and Businesses liable to pay the Business Rate. The proceeds of Council Tax & Business
Rates are shared between the Council and its partner organisations as detailed in Note CF3
below.
Wycombe District Council's own entitlement to this income is shown on the Comprehensive
Income & Expenditure Account
CF2 Council Tax Payers & Precepting Authorities (Fund Outturn for the Year)
The charge for council tax is based on the total number of dwellings in each of eight bands
at 1 April 1991 valuations. This is adjusted for dwellings where discounts or exemptions apply
and is converted into an “equivalent number of Band D dwellings” where bands below Band
D will pay proportionately less than dwellings in higher bands. A further adjustment is made
for losses on collection and contributions in lieu of tax in respect of certain government
properties. The table below sets out the calculation of the Council Tax Base for 2017/18.
- - 0.56 -
743.03 1,129.95 0.67 757.07
5,089.66 6,589.15 0.78 5,139.54
14,184.33 16,092.35 0.89 14,322.19
10,842.82 11,150.28 1.00 11,150.28
12,242.76 10,105.05 1.22 12,328.16
11,816.28 8,250.85 1.44 11,881.22
10,871.12 6,560.70 1.67 10,956.37
1,922.20 979.40 2.00 1,958.80
67,712.20 60,857.73 68,493.63
(1,339.32) Less: Allowance for losses on collection (1,354.46)
66,372.88 67,139.17
1,560.41 1,627.01
103,569 109,236
E
Equivalent
Number of
Band D
Dwellings
2016/17
Valuation Band Total
Chargeable
Dwellings
Conversion
Faction
(Proportion)
Equivalent
Number of
Band D
Dwellings
2017/18
A (Disabled Relief)
A
B
C
D
F
G
H
Council Tax Base for the Year (number of weighted properties Band D) (X)
Average Council Tax at Band D level (Y)
Council Tax budgeted for the year (£'000) (X multiplied by Y)
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CF3 Business Rate Payers
In line with the Local Government Act 2003, from 1 April 2005, all business premises are subject to a
tax known as Non-Domestic Rates (NDR). The tax is calculated using local rateable values
which are then multiplied by a uniform rate.
The Council is responsible for collecting the total amount of NDR payable, less certain reliefs
and other deductions, and paying a percentage over to Central Government and Major
Preceptors. The Council retains 40% of NDR receipts which are recorded in the
Comprehensive Income & Expenditure Statement.
The relevant rateable value and multiplier data is shown below:
2016/17 2017/18
£171,280,975 Total Non-domestic Rateable Value at 31 March £177,335,287
49.7p National Non-domestic Rate Multiplier - Full 47.9p
CF4 Preceptor Debtor / Creditor Balances
The Council has to reflect balances held in respect of its own share of Council Tax and Non-
Domestic Rates debt. The remaining balances are reflected within the Balance Sheet as
debtors or creditors with major preceptors and the Government depending on whether the
cash paid over to them is more or less than their attributable share of Council Tax or NDR
due for the year, net of any provision for bad debts.
Council
Tax
Business
Rates Total
Council
Tax
Business
Rates Total
£000 £000 £000 £000 £000 £000
Wycombe District Council (448) 1,983 1,535 (265) 1,162 897
Central Government 0 2,478 2,478 0 1,451 1,451
Bucks County Council (3,006) 445 (2,561) (1,828) 261 (1,567)
Thames Valley Police Authority (437) 0 (437) (255) 0 (255)
Bucks & Milton Keynes Fire (156) 49 (107) (91) 29 (62)
Collection Fund (Surplus)/Deficit (4,047) 4,955 908 (2,439) 2,903 464
31 March 2017 31 March 2018
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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WYCOMBE DISTRICT COUNCIL
Opinion
We have audited the financial statements of Wycombe District Council for the year ended 31 March
2018 under the Local Audit and Accountability Act 2014. The financial statements comprise the:
Movement in Reserves Statement;
Comprehensive Income and Expenditure Statement;
Balance Sheet;
Cash Flow Statement;
Related notes 1 to 32; and
Collection Fund and the related notes CF1 to CF4.
The financial reporting framework that has been applied in their preparation is applicable law and
the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom 2017/18.
In our opinion the financial statements:
give a true and fair view of the financial position of Wycombe District Council as at 31 March 2018 and of its expenditure and income for the year then ended; and
have been prepared properly in accordance with the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom 2017/18.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report below. We are independent of the Authority in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and the Comptroller and Auditor General’s (C&AG) AGN01, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
the Head of Finance and Commercial’s use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the Head of Finance and Commercial has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Authority’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
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Other information
The other information comprises the information included in the Statement of Accounts, set out on
pages 4 to 18, other than the financial statements and our auditor’s report thereon. The Head of
Finance and Commercial is responsible for the other information.
Our opinion on the financial statements does not cover the other information and, except to the
extent otherwise explicitly stated in this report, we do not express any form of assurance conclusion
thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated. If we identify such material inconsistencies or apparent material misstatements, we are
required to determine whether there is a material misstatement in the financial statements or a
material misstatement of the other information. If, based on the work we have performed, we
conclude that there is a material misstatement of the other information, we are required to report that
fact.
We have nothing to report in this regard.
Opinion on other matters prescribed by the Local Audit and Accountability Act 2014
In our opinion, based on the work undertaken in the course of the audit, having regard to the
guidance issued by the C&AG in November 2017, we are satisfied that, in all significant respects,
Wycombe District Council put in place proper arrangements to secure economy, efficiency and
effectiveness in its use of resources for the year ended 31 March 2018.
Matters on which we report by exception
We report to you if:
in our opinion the annual governance statement is misleading or inconsistent with other information forthcoming from the audit or our knowledge of the Council;
we issue a report in the public interest under section 24 of the Local Audit and Accountability Act 2014;
we make written recommendations to the audited body under Section 24 of the Local Audit and Accountability Act 2014;
we make an application to the court for a declaration that an item of account is contrary to law under Section 28 of the Local Audit and Accountability Act 2014;
we issue an advisory notice under Section 29 of the Local Audit and Accountability Act 2014; or
we make an application for judicial review under Section 31 of the Local Audit and Accountability Act 2014.
We have nothing to report in these respects.
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Responsibility of the Head of Finance and Commercial
As explained more fully in the Statement of the Head of Finance and Commercial’s Responsibilities
set out on page 19, the Head of Finance and Commercial is responsible for the preparation of the
Statement of Accounts, which includes the financial statements, in accordance with proper practices
as set out in the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United
Kingdom 2017/18, and for being satisfied that they give a true and fair view.
In preparing the financial statements, the Head of Finance and Commercial is responsible for
assessing the Authority’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless the Authority either
intends to cease operations, or have no realistic alternative but to do so.
The Authority is responsible for putting in place proper arrangements to secure economy, efficiency
and effectiveness in its use of resources, to ensure proper stewardship and governance, and to
review regularly the adequacy and effectiveness of these arrangements.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This
description forms part of our auditor’s report.
Scope of the review of arrangements for securing economy, efficiency and effectiveness in
the use of resources
We have undertaken our review in accordance with the Code of Audit Practice, having regard to the
guidance on the specified criterion issued by the Comptroller and Auditor General (C&AG) in
November 2017, as to whether Wycombe District Council had proper arrangements to ensure it took
properly informed decisions and deployed resources to achieve planned and sustainable outcomes
for taxpayers and local people. The Comptroller and Auditor General determined this criterion as
that necessary for us to consider under the Code of Audit Practice in satisfying ourselves whether
Wycombe District Council put in place proper arrangements for securing economy, efficiency and
effectiveness in its use of resources for the year ended 31 March 2018.
We planned our work in accordance with the Code of Audit Practice. Based on our risk assessment,
we undertook such work as we considered necessary to form a view on whether, in all significant
respects, Wycombe District Council had put in place proper arrangements to secure economy,
efficiency and effectiveness in its use of resources.
We are required under Section 20(1)(c) of the Local Audit and Accountability Act 2014 to satisfy
ourselves that the Authority has made proper arrangements for securing economy, efficiency and
effectiveness in its use of resources. The Code of Audit Practice issued by the National Audit Office
(NAO) requires us to report to you our conclusion relating to proper arrangements.
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We report if significant matters have come to our attention which prevent us from concluding that the
Authority has put in place proper arrangements for securing economy, efficiency and effectiveness
in its use of resources. We are not required to consider, nor have we considered, whether all
aspects of the Authority’s arrangements for securing economy, efficiency and effectiveness in its
use of resources are operating effectively.
Certificate
We certify that we have completed the audit of the accounts of Wycombe District Council in
accordance with the requirements of the Local Audit and Accountability Act 2014 and the Code of
Audit Practice issued by the National Audit Office.
Use of our report
This report is made solely to the members of Wycombe District Council, as a body, in accordance
with Part 5 of the Local Audit and Accountability Act 2014 and for no other purpose, as set out in
paragraph 43 of the Statement of Responsibilities of Auditors and Audited Bodies published by
Public Sector Audit Appointments Limited. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the Authority and the Authority’s members as a body,
for our audit work, for this report, or for the opinions we have formed.
Maria Grindley (Key Audit Partner)
Ernst & Young LLP (Local Auditor)
Reading
26 July 2018
The maintenance and integrity of the Wycombe District Council website is the responsibility of the
directors; the work carried out by the auditors does not involve consideration of these matters and,
accordingly, the auditors accept no responsibility for any changes that may have occurred to the
financial statements since they were initially presented on the website.
Legislation in the United Kingdom governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
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ANNUAL GOVERNANCE STATEMENT 2017/2018
Introduction
Both the Leader and the Chief Executive recognise the importance of having a system of rules, policies and procedures in place to ensure that information is available to help, shape and direct the way in which services are managed and delivered.
Each year, the Council is required to produce an Annual Governance Statement (AGS) which explains how its corporate governance arrangements have been working in practice.
The AGS in respect of 2017/18 was presented to the Audit Committee at its meeting in May 2018, along with a new Local Code of Governance for 2018, for their review and comment prior to submission of the AGS to the Leader and Chief Executive for formal sign off alongside the Annual Accounts.
Scope of responsibility This statement covers the period 1 April 2017 to 31 March 2018 Wycombe District Council is responsible for ensuring that its business is conducted in accordance with the law and proper standards, that public money is safeguarded and properly accounted for, and used economically, efficiently and effectively. Wycombe District Council also has a duty under the Local Government Act 1999 to make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness. This statement explains how Wycombe District Council meets the requirements of the Accounts and Audit Regulations, which are made under the Local Audit and Accountability Act 2016, in that it must have in place a sound system of internal control that:
(a) facilitates the effective exercise of the Council’s functions and the achievement of its aims and objectives;
(b) ensures that the financial and operational management of the Authority is effective; and
(c) includes effective arrangements for the management of risk. In discharging this overall responsibility, Wycombe District Council is responsible for putting in place proper arrangements for the governance of its affairs. The purpose of the governance framework Our governance framework comprises the systems and processes, and cultural values, by which the Authority is directed, controlled and its activities through which it accounts to, engages with and leads the community. It enables the Authority to monitor the achievement of its strategic objectives and to consider whether those objectives have led to the delivery of appropriate, cost-effective services. Our system of internal control is a significant part of that framework and is designed to manage risk to a reasonable level. It cannot eliminate risks of failure to achieve policies, aims and objectives and can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an on-going process designed to identify and prioritise the risks to the achievement of Wycombe District Council policies, aims and objectives, to evaluate the likelihood of
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those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. This governance framework has been in place at Wycombe District Council for the year ended 31 March 2018 and up to the date of approval of the statement of accounts. The governance framework In 2016, guidance was issued by the Chartered Institute of Public Finance and Accountancy (CIPFA) and Society of Local Authority Chief Executives (Solace) “Delivering Good Governance in Local Government Framework 2016 Edition” (referred to as Delivering Good Governance) and this formed the basis of the Councils Local Code of Governance as well as this AGS. The guidance is split into seven core principles which are detailed below:
A Behaving with integrity, demonstrating strong commitment to ethical values, and respecting the rule of law
B Ensuring openness and comprehensive stakeholder engagement.
C Defining outcomes in terms of sustainable economic, social and environmental aspects.
D Determining the interventions necessary to optimise the achievement of the intended outcomes
E Developing the entity’s capacity, including the capability of its leadership and the individuals within it.
F Managing risks and performance through robust internal control and strong public financial management.
G Implementing good practice in transparency, reporting, and audit to deliver effective accountability
Commitments
It is important that Wycombe District Council’s approach to effective governance is understood by all.
The following 7 goals demonstrate Wycombe District Councils’ approach to good governance.
Clearly set out Wycombe’s objectives and what it is trying to achieve.
Measure and publicise how effective Wycombe’s services are and take action to improve
where performance is below target.
Making best use of public money by taking prudent and risk based financial decisions and
measuring the value for money it achieves.
Clear Constitution that sets out who can take which decisions.
Members and Officers behaving in ways that reflect Wycombe’s values and high standards of
conduct.
Record and publish the decisions that Wycombe takes and the reasons for them and where
possible makes the most important decisions in public.
Have in place a scrutiny function that holds the Executive to account.
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Review of effectiveness Wycombe District Council has responsibility for conducting, at least annually, a review of the effectiveness of its governance framework including the system of internal control. The review of effectiveness is informed by the work of the executive managers within the authority who have responsibility for the development and maintenance of the governance environment, Internal Audit annual report, and also by comments made by the external auditors and other review agencies and inspectorates. Each year all Heads of Service and their Management Teams are required to complete and sign-off with their line manager the Annual Assurance Statement. This return identifies whether the service area has full, partial or non-compliance, based on evidence, with improvement tasks identified as appropriate. The statement for the period 1 April 2017 to 31 March 2018 covered the following areas, against which the level of compliance is recorded.
1. Service objectives – full compliance. 2. People - partial compliance. 3. Use of resources –partial compliance 4. Health and safety – full compliance 5. Information Governance and records management – partial compliance. 6. Business risk and business continuity –partial compliance 7. Transparency and Accountability – full compliance. 8. Partnership working – full compliance 9. Project management – partial to full compliance 10. Contracts – full compliance
KEY THEMES ARISING FROM THE 2017/18 AAS PROCESS
Of the 5 areas where partial compliance was recorded, these are briefly explained below:
People
Partial compliance in that job descriptions (JD’s) need to be reviewed in line with individual
performance development plans.
Use of Resources
Partial compliance in regards to the Services being able to demonstrate performance levels across
the range of services provided.
NB this was a theme from the 2016/17 AAS process
Information Governance and Records Management
Partial compliance in that further work was required in relation to the management of paper and
electronic records which would enable both the ease of location and disposal of records at the
appropriate time.
NB this was a theme from the 2016/17 AAS process
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Business Continuity (BC)
Partial compliance in that further work was required in ensuring that Services had made adequate
arrangements to ensure continued service delivery and that the arrangements have been
communicated to all relevant staff.
In addition to the above, a test (dry run) should be undertaken to validate the process detailed in the
BC Plan on a corporate or on a Service by Service basis.
NB this was a theme from the 2016/17 AAS process
Project Management
Partial compliance in that Lessons Learnt reports are not produced and shared corporately for projects
completed within a Service, during the year.
NB this was a theme from the 2016/17 AAS process
LOCAL CODE OF CORPORATE GOVERNANCE
It is important to acknowledge that many of the key governance mechanisms referred to in the Local Code are relatively static in terms of currency and do not tend to alter over time.
However it is the review of their effectiveness in practice rather than a review of their existence that demonstrates the efficacy of the Council’s AGS for 2017/8.
During 2017/18, Officers have fully implemented 4 of the 9 Areas for Improvement from the review of the Local Code in 2016/17, with 3 due to be implemented in 2018/19 and a further 3 are to be considered by SMB as regards: Implemented
1. Introduced an Annual report process outlining the work of the Standards Committee. 2. Reminders have been issued to all Members of the need to ensure that all
disclosures are made. 3. Revised Whistleblowing policy introduced. 4. New revised Corporate Plan introduced for 2018/19
Due for implementation in 2018/19
1. Annual report summarising service improvements completed as a result of feedback
the Council has received.
2. Progress to be reported on annual basis to assess the implementation, delivery and
monitoring of the refreshed corporate plan.
3. Progress to be reported to assess the purpose and applicability the quarterly financial
and performance process to be introduced in 2018/19.
However the following 4 Areas for Improvement from the 2017/18 review process that have not been implemented and have therefore been restated below in order that Management can consider their applicability as individual work streams for implementation during 2018/19:
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The ”minded to” announcement (March 2018) by the Secretary of State with regard to the future of
local government in Buckinghamshire has had an impact on the delivery of work streams during
2017/18 and these have therefore been restated in the Areas of Improvement Plan for 2018/19. This
will enable senior management the opportunity to discuss the future relevance of each of the affected
separate work streams.
1. Review covering both the Constitution and the wider decision making & governance
arrangements to be undertaken.
2. Review to be undertaken to assess the purpose and content of the current
Communications policy.
3. Review to be undertaken to refresh and update the current Engagement strategy and
toolkit.
4. Consider the commissioning of a Household Survey during 2018/19.
The publication of our Local Code and the Annual Governance Statement meets the requirement of the Accounts and Audit (England) Regulations 2016, and the AGS accompanies the Annual Financial Accounts report which is available on the Council’s website.
OVERALL ASSESSMENT
We have been advised on the implications of the result of the review of the effectiveness of the governance framework by the Audit Committee, and will ensure that the Identified Areas for Improvement are implemented so as continually improve our processes and procedures. .
Leader of the Council
Chief Executive
On behalf of Wycombe District Council
Date: 04/06/2018 Date: 04/06/2108
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GLOSSARY OF TERMS
Accounting Period
The period of time covered by the accounts, normally a period of twelve months commencing on 1 April for local authority accounts. The end of the accounting period is the Balance Sheet date.
Accounting Policies
The rules and practices adopted by the Council that determine how the transactions and events are reflected in the accounts.
Accruals Amounts included in the accounts for income or expenditure in relation to the financial year but not received or paid as at 31 March.
Actuarial Gains and Losses
These arise where actual events have not coincided with the actuarial assumptions made for the last valuations (known as experience gains and losses) or the actuarial assumptions have changed.
Amortisation The reduction of the value of an intangible asset by spreading its cost over a period of years.
Annual Governance Statement
The Annual Governance Statement is a statutory document that explains the processes and procedures in place to enable the Council to carry out its functions effectively.
Appointed Auditors
The Council’s appointed auditors are Ernst & Young (EY)
Appropriation
The transfer of resources between reserves
Asset An item having value measurable in monetary terms. Assets can either be defined and fixed or current. A fixed asset has use and value for more than one year whereas a current asset (e.g. short-term debtors) can readily be converted into cash.
Balance Sheet
A financial statement summarising the financial position of the Council, in particular its assets, liabilities and other balances at the end of each accounting period.
Billing Authority
A local authority responsible for collecting Council Tax and Non-Domestic Rates (Business Rates).
Budget
A budget is a financial statement that expresses an organisation’s service delivery plans and capital programme in monetary terms.
Business Rates (NDR)
Rates are payable on business premises based on their rateable value (last assessed in the 2010 Rating List by the Valuation Office Agency) and a national rate poundage multiplier.
Capital Adjustment Account
A reserve set aside from revenue resources or capital receipts to fund capital expenditure or the repayment of external loans and certain other capital financing transactions.
Capital Expenditure
Expenditure for the acquisition, construction, enhancement or replacement of fixed assets that will be used in providing services for more than one year.
Capital Financing
The raising of money to pay for capital expenditure. There are various methods of financing capital expenditure including borrowing, direct revenue financing, usable capital receipts, capital grants and capital contributions.
Capital Receipts
Income received from the sale of land, buildings and equipment. Proportions of capital receipts can be used to repay debt on Long Term Assets or to
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finance new capital expenditure, within rules set down by government, but cannot be used for revenue purposes.
Cashflow Statement
A statement that summarises the inflow and outflows of cash within the Council’s accounts.
CIPFA Chartered Institute Of Public Finance and Accountancy The professional institute for accountants working in the public services.
Collection Fund
A statutory fund maintained by the Council, which is used to record council tax and non-domestic rates collected by the Council, along with payments to central Government, precepting authorities and its own general fund.
Community Assets
This is the land and property that the Council intends to hold forever. They generally have no determinable useful life and there are often restrictions regarding their sale. Examples include open spaces.
Contingent Asset
Potential gains and losses for which a future event will establish whether an asset exists and for which it is inappropriate to set up a debtor in the accounts.
Contingent Liability
A contingent liability is either:
(i) A possible obligation arising from a past event whose existence will be confirmed by the occurrence of one or more uncertain future events not wholly within the control of the Council; or
(ii) A present obligation arising from past events where it is not probable that there will be an associated cost or the amount of the obligation cannot be accurately measured.
Council Tax Council tax is levied on households and the proceeds are paid into its Collection Fund for distribution to precepting authorities and for use by its own General Fund.
Creditor This term applies to money the Council owes to others for work done or goods and services it has received during the financial year but not paid for at the end of the accounting period.
Current Service Cost (Pensions)
The increase in present value of a defined benefit scheme's liabilities expected to arise from employee service in the current period.
Defined Benefit Scheme
A pension or other retirement benefit scheme other than a defined contribution scheme. Usually the scheme rules define the benefits independently of the contributions payable, and the benefits are not directly related to the investments of the scheme.
Debtor This term applies to money that others owe to the Council for work done or goods and services that have been provided to them by the Council during the financial year but have not been paid for by the end of the accounting period.
Depreciation A measure of the cost or amount of benefit of a non-current asset that has been consumed during the period.
Earmarked Reserves
These are funds set aside for a specific purpose, or a particular service, or type of expenditure.
Expected Rate of Return on
For a funded defined benefit scheme, the average rate of return, including both income and changes in fair value but net of scheme expenses, expected over
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Pension Assets
the remaining life of the related obligation on the actual assets held by the scheme.
Fair Value The amount for which an asset could be exchanged or a liability settled, assuming that the transaction was negotiated between parties knowledgeable about the market in which they are dealing and willing to buy/sell at an appropriate price, with no other motive in their negotiations other than to secure a fair price.
Finance Lease
A lease that transfers substantially all of the risks and rewards of ownership of a fixed asset to the lessee. Such a transfer of risks and rewards may be presumed to occur if at the inception of the lease the present value of the minimum lease payments, including any initial payment, amounts to substantially all of the fair value of the lease.
General Fund The Income and Expenditure of the Council as defined by Statute as distinct from definition by IFRS Financial Reporting Standards.
Heritage Assets
Heritage Assets are held with the objective of increasing knowledge, understanding and the appreciation of the Authority's history and local area.
Houses in Multiple Occupation (HMO’s
WDC has a duty to licence Houses in Multiple Occupation. A rented property is considered a House in Multiple Occupation if:
(i) at least three tenants live there, forming more than one ‘household’ (ii) the tenants share toilet, bathroom and/or kitchen facilities
IFRS International Financial Reporting Standards.
Impairment This is a reduction in the value of Property or Plant as shown in the balance sheet to reflect its true value.
Infrastructure Assets
Fixed assets that have no alternative use and are intended to be held in perpetuity. Examples of infrastructure assets are highways and footpaths.
Investments Short-term investments are those maturing within one year if the balance sheet date, any investments maturing more than one year after the balance sheet date are treated as long-term investments.
Investment Properties
Interest in land and/or buildings in respect of which construction work and development have been completed and which is held for its investment potential.
Long Term Debtors
Amounts due to the Council more than one year after the Balance Sheet date.
Net Book Value (NBV)
The amount at which Property, Plant & Equipment is included in the Balance Sheet, i.e. their historical costs or current value less the cumulative amounts provided for depreciation.
Net Current Replacement Cost
The cost of replacing or recreating the particular asset in its existing condition and in its existing use, i.e. the cost of its replacement or of the nearest equivalent asset, adjusted to reflect the current condition of the existing asset.
Net Realisable Value
The open market value of the asset in its existing use (or open market value in the case of non-operational assets), less the expenses to be incurred in realising the asset.
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Non-Operational Assets
Long Term Assets held by an organisation but not directly occupied, used or consumed in the delivery of services. An example of a non-operational asset is an investment property or an asset being held pending its sale.
Operational Assets
Long Term Assets held by the Council and used or consumed in the delivery of its services.
Operating Lease
An arrangement whereby the risks and rewards of ownership of the leased asset remain with the leasing company.
Pension Fund
An employees’ pension fund maintained by an authority, or a group of authorities, in order primarily to make pension payments on retirement of participants. It is financed from contributions from the employing authority, the employee and investment income.
Precept The amount by which a Precepting Authority (e.g. a County Council) requires from a Billing Authority (e.g. District Councils) to meet its expenditure requirements.
Projected Unit Method
An accrued benefits valuation method in which the scheme liabilities make allowance for projected earnings. An accrued benefits valuation method is a valuation method in which the scheme liabilities at the valuation date relate to:
(i) the benefits for pensioners and deferred pensioners (i.e. individuals who have ceased to be active members but are entitled to benefits payable at a later date) and their dependents, allowing where appropriate for future increases; and
(ii) the accrued benefits for members in service on the valuation date.
The accrued benefits are the benefits for service up to a given point in time, whether vested rights or not.
Property Plant & Equipment
Tangible assets that benefit the local authority and the services it provides for a period of more than one year.
Provisions Sums set aside to meet future expenditure where a specific liability is known to exist but cannot be measured accurately.
Related Parties
Two or more parties are related parties when at any time during the financial period:
(i) one party has direct or indirect control of the other party; or (ii) the parties are subject to common control from the same source;
or (iii) one party has influence over the financial and operational policies
of the other party to an extent that the other party might be inhibited from pursuing at all times its own separate interests; or
(iv) the parties, in entering a transaction, are subject to influence from the same source to such an extent that one of the parties to the transaction has subordinated its own separate interests
Related Party Transaction
A related party transaction is the transfer of assets or liabilities or the performance of services by, to or for a related party irrespective of whether a charge is made.
Residual Value
The net realisable value of an asset at the end of its useful life. Residual values are based on prices prevailing at the date of the acquisition (or revaluation) of the asset and do not take account of expected future price changes.
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Revenue Expenditure Financed By Capital Under Statute (REFCUS)
Expenditure that may be classified under legislation as capital but does not result in the creation of a non-current (fixed) asset on the Balance Sheet. This expenditure is generally charged to the relevant service revenue account in the year incurred with a corresponding credit to the Statement of Movements in Reserves to ensure there is no cost to the General Fund.
Revenue Support Grant (RSG)
This funding is the Government Grant provided by the Department for Communities and Local Government (DCLG), which is based on the Government’s assessment as to what should be spent on local services. The amount provided by the DCLG is fixed at the beginning of each financial year.
Scheme Liabilities (Pensions)
The liabilities of a defined scheme for outgoings due after the valuation date. Scheme liabilities measured using the projected unit method reflect the benefits that the employer is committed to provide for service up to the valuation date.
Service Reporting Code of Practice (SeRCOP)
CIPFA’s Service Reporting Code of Practice sets out the financial reporting guidelines for local councils. It supplements the principles and practice set out in the Code of Practice on Local Authority Accounting (known as the Code), by establishing practice for consistent reporting.
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